Budget Blues

New Jersey needs to have a budget in place by July 1. Good luck with that. Gov. Corzine's idea of balancing the budget is to increase state spending by 9% and then increase taxes and fees to cover the change, and call that a fiscally prudent budget and that it includes cuts.

Corzine, at a Trenton news conference announcing an auction of used state cars, said the Assembly has made a "legitimate attempt" at proposing alternatives. But he also said other aspects of their proposals are "not doable" and would only put off tough decisions and prolong the state's budget problems.

The governor said he still believes the "best way" to balance the budget is with a sales tax increase, which Assembly leaders say is dead in the lower house. He acknowledged he's been meeting privately with Assembly members in recent days and said "there is more support (for the sales tax increase) than has been characterized" by Assembly leaders.

Corzine stopped short of saying he would use his veto power should the Legislature send him a budget without a higher sales tax. But he suggested he could use his line item veto to cut municipal aid or higher education, which could lead to tuition hikes or property tax hikes.

Sorry, but Trenton absolutely must consider cutting spending in order to get its financial affairs in order. The state spends far too much money and forces taxes to increase to offset the costs of programs. This year, the big tax changes look like a sales tax hike, although there was a possibility that the state would tax hospital stays (which thankfully was spiked out of moment of clarity).

New Jersey taxpayers already have one of the top five tax burdens in the nation. Adding to that burden will only increase the number of taxpayers and businesses moving elsewhere. Is that what Trenton wants, because that only forces the remaining taxpayers to pay an ever higher share of taxes to cover costs.

Corzine refuses to part with the sales tax hike. The last time a governor forced tax hikes of this nature on the state, Jim Florio was tossed from office after one term and replaced by Whitman. Is that what Corzine wants? New Jersey would reduce the competitive nature of businesses in New Jersey compared with neighboring states, who impose higher taxes on tangible personal property and services. That, in turn, forces more businesses to reconsider doing business in New Jersey exascerbating the problems further. New Jersey doesn't need more taxes, it needs fiscal sanity and curbing out-of-control spending.

Yet that would mean Corzine standing up to the unions, with whom he has a very cozy relationship. That would be bad news come reelection time as well, but Corzine has a couple of years before facing voters again. The Legislature has to deal with the voters in November, and you can be assured that they don't want to be caught holding Corzine's bag of tax increases.

See EnlightenNJ (keep scrolling) and Dynamobuzz for more.