What about cutting the fat from the payrol of public servants, especially the top-end roles with multiple roles and pay?

N.J.'s new cuts affect dozens of programs

Tuesday, January 6, 2009
BY JOHN REITMEYER
NorthJersey.com
TRENTON BUREAU

New Jersey is cutting money for homeland security, cancer grants, police equipment and dozens of other programs in an emergency effort to close a $2.1 billion budget deficit.

A new round of spending cuts ? $812 million in all ? was announced Monday by state Treasurer David Rousseau.

The spending cuts come in response to a substantial decrease in revenue brought on by the national recession. Every source of state revenue with the exception of the state lottery system is underperforming.

The cuts are spread among all state departments: education, corrections, environmental protection and senior services, among others.

"I believe we did this in a fair and equitable manner," Rousseau said.

An Englewood schools program aimed at academic improvement and desegregation is among the apparent casualties. Englewood could potentially lose $4 million that currently goes toward staffing in the elementary, middle and high schools.

"If we lose that, I'm not sure how we're going to do the budget and maintain the quality of the district we have now," said acting Superintendent Richard Segall. "It means much larger class sizes, less staff."

The cuts come as part of a larger plan Governor Corzine announced on Friday designed to help the state deal with a $2.1 billion budget deficit caused by the poor economy. Corzine's plan includes using a combination of rainy day funds, expected financial help from Washington and these latest spending cuts.

Republicans in Trenton, however, immediately criticized the governor on Monday, saying he should have taken their advice and cut more from the budget before the economy turned bad.

But Rousseau said his department started planning for the impact of a poor economy back in August. They looked for "anything that wasn't nailed down," he said.

"We went through an unprecedented, line-by-line review of every department's budget midyear, which I don't believe has ever been done before," he said.

Budget items as little as 46 cents were cut.

"We scraped the bottom of the barrel," he said.

The total $812 million in cuts go into effect immediately, although some will require legislators to sign off.

Corzine said he will also be seeking to freeze the salaries of unionized state workers in time for the next budget, which is scheduled to be introduced in March. That step would prevent possible furloughs and layoffs, he said. Tax increases are not being planned.

The new cuts come after Corzine and the Legislature fought over $600 million in spending reductions eventually included in this year's budget approved in June. Those budget cuts drew a series of protests, and the governor backed away from some he originally proposed.

Rousseau said this round of spending cuts is absolutely necessary because the state constitution requires spending to match revenue.

"People are always going to be upset about any budget cut," Rousseau said. "We have a constitutional obligation to balance the budget."

Republicans Tom Kean Jr. and Alex DeCroce, the GOP's respective leaders in the Senate and Assembly, issued a statement that said Corzine, a former Wall Street executive, put the state in a desperate situation by increasing spending and debt in prior years.

"Like bank executives did with investors' money, Corzine rolled the dice and bet that good times would last forever," the Republicans said.

In addition to the new cuts, the state is also taking $500 million that was set aside for reducing debt to plug the budget deficit. An additional $275 million will come out of a rainy day surplus fund, and an additional $208 million was already saved during the closeout of the previous budget.

The governor is also hoping to receive $300 million from a federal economic stimulus plan that could include aid for states.

U.S. Sen. Bob Menendez, D-N.J., said Monday that he expects Congress will pass a stimulus package that includes tax breaks and a "robust" infrastructure program by early February.

Menendez also said funding for states is "possible."

"I think it's going to be in there ? but until we pass anything, nothing is ever certain," Menendez said.

President-elect Barack Obama told the nation's governors last month in a meeting in Philadelphia that he would be their partner in economic recovery, and that would likely mean the administration would be pushing for help for states, Menendez said.

He said negotiations in Congress have focused mainly on the best way to spend the infrastructure money and tax relief.

Menendez held a news conference near the Pulaski Skyway in Jersey City on Monday afternoon to highlight the kinds of projects that could be funded with a stimulus package.

The 85-year-old roadway, which carries 85,000 people daily between Newark and Jersey City, would undergo significant improvements, including shoring up the structure and installing de-icing systems, he said.

Staff Writers Herb Jackson, Elise Young and Maya Kremen contributed to this article.
Page 1 2 >> Fit story on 1 page

New Jersey is cutting money for homeland security, cancer grants, police equipment and dozens of other programs in an emergency effort to close a $2.1 billion budget deficit.

A new round of spending cuts ? $812 million in all ? was announced Monday by state Treasurer David Rousseau.

The spending cuts come in response to a substantial decrease in revenue brought on by the national recession. Every source of state revenue with the exception of the state lottery system is underperforming.

The cuts are spread among all state departments: education, corrections, environmental protection and senior services, among others.

"I believe we did this in a fair and equitable manner," Rousseau said.

An Englewood schools program aimed at academic improvement and desegregation is among the apparent casualties. Englewood could potentially lose $4 million that currently goes toward staffing in the elementary, middle and high schools.

"If we lose that, I'm not sure how we're going to do the budget and maintain the quality of the district we have now," said acting Superintendent Richard Segall. "It means much larger class sizes, less staff."

The cuts come as part of a larger plan Governor Corzine announced on Friday designed to help the state deal with a $2.1 billion budget deficit caused by the poor economy. Corzine's plan includes using a combination of rainy day funds, expected financial help from Washington and these latest spending cuts.

Republicans in Trenton, however, immediately criticized the governor on Monday, saying he should have taken their advice and cut more from the budget before the economy turned bad.

But Rousseau said his department started planning for the impact of a poor economy back in August. They looked for "anything that wasn't nailed down," he said.

"We went through an unprecedented, line-by-line review of every department's budget midyear, which I don't believe has ever been done before," he said.

Budget items as little as 46 cents were cut.

"We scraped the bottom of the barrel," he said.

The total $812 million in cuts go into effect immediately, although some will require legislators to sign off.

Corzine said he will also be seeking to freeze the salaries of unionized state workers in time for the next budget, which is scheduled to be introduced in March. That step would prevent possible furloughs and layoffs, he said. Tax increases are not being planned.

The new cuts come after Corzine and the Legislature fought over $600 million in spending reductions eventually included in this year's budget approved in June. Those budget cuts drew a series of protests, and the governor backed away from some he originally proposed.

Rousseau said this round of spending cuts is absolutely necessary because the state constitution requires spending to match revenue.

"People are always going to be upset about any budget cut," Rousseau said. "We have a constitutional obligation to balance the budget."

Republicans Tom Kean Jr. and Alex DeCroce, the GOP's respective leaders in the Senate and Assembly, issued a statement that said Corzine, a former Wall Street executive, put the state in a desperate situation by increasing spending and debt in prior years.

"Like bank executives did with investors' money, Corzine rolled the dice and bet that good times would last forever," the Republicans said.