Corzine Plans Budget Freeze

This would be welcome news if Trenton can actually be convinced to go along with the plan. New Jersey is in a huge fiscal mess because no one ever displayed any fiscal prudence and spending outpaced revenues significantly over the past two decades.

If Trenton doesn't increase the budget, it would be only the second time since 1992 that spending hasn't increased from one year to the next. The budget has increased exponentially over the past decade, and without the means to pay for it out of ongoing revenues, the legislature and governors have resorted to one-shots to pay for things.

Gov. Corzine, a Democrat, promises to change that with his budget that will be revealed this week. Of course, there's a bit of reality that will have to set in as Corzine has promised more than $500 million in new education spending and the state faces a budget deficit of $3 billion for the current fiscal year.

New Jersey's debt has doubled since 2000 and makes the state the nation's fourth-most indebted state. Most of that debt was rung up before Corzine became governor through borrowing to, among other things, provide pensions for public workers and balance the state budget.

Debt consumes about 10 percent of the current state budget, a figure Corzine predicts will rise in years ahead and prevent the state from investing in vital unmet needs such as the $13.6 billion in needed bridge repairs.

Something has got to give, and the likelihood is that the state will see serious increases in taxes and fees. Already, expect to see increases in tolls to cover the cost of capital improvements and maintenance. The state transportation commissioner has said a 45% increase is needed just to widen the turnpike and fix bridges on it and the parkway.