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February 22, 2012

Governor Chris Christie's 2013 budget plan unveiled


Governor Chris Christie gave his Fiscal Year 2013 Budget Address. (UPI/David Handschuh/Pool)

By JASON MOUSSAB
      Staff Writer

Governor Chris Christie revealed his budget plan for the 2013 fiscal year. His $32.1 billion plan is a 3.7 percent increase over this year’s budget.

Christie anticipates an improving economy will help the state give “more money to schools, make its largest single-year pension payment ever, hikes the earned income tax credit from 20 to 25 percent, and preserves hospital funding at its current level.”

Treasurer Andrew Sidamon-Eristoff notes that the state economy is experiencing a comeback.

“We are essentially on track,” he said.

Christie predicts a closing balance of $300 million and no tax increases.

 Among the items listed in his plan, education aid will increase to $213 million; however, districts were not named on who would benefit and who would lose.

The state proposes to make a state pension of $1.07 billion, its largest since 2008, and increase the earned income tax credit by five percent. Working families can gain an average of $495 dollars in the first year.

Hospital funding would remain at status quo with $986 million “and is related to an overall reform of documentation of charity care spending.”

In addition, Christie’s plan showcases a realignment of several state departments.    

Senior services transitions from the Department of Health and Senior Services to new Division of Aging Services.

Children and Youth Programs and the Division of Women would depart from their respective sections and be categorized as one, under the Department of Children and Families.

Hospital funding would change from Human Services to the Department of Health, and the Sports and Exposition Authority will be the agency attracting sporting and entertainment events.

Christie also noted that the plan is to spend $108 million on higher education. 

Though there was good news, Christie did deliver bad, as the Transitional Aid category will see a decrease in funding, but the Consolidated Municipal Property Tax Relief will grow to approximately $1.34 billion.

“This will help towns shift to become more self-sufficient,” Sidamon-Eristoff explained.

 Senator Kevin O’Toole, a member of the Senate Budget and Appropriations committee, supported the governor’s plan.

“This budget demonstrates Governor Christie’s commitment to the New Jersey Comeback,” he said. “This budget begins on a historic note, with the single largest pension payment of $1.1 billion, in our State’s history.”

However, Senate Majority Leader, Loretta Weinberg released a statement saying that Christie was mistaken and that he “falsely” claimed that property tax has been solved.

“The Governor got it wrong with this budget and the middle class will pay the price if he gets his way,” she said. “It's wrong for him to put in place a tax scheme that provides a windfall for the wealthy and only small savings for the middle class and working people.”

Weingberg goes on to say that it is incorrect for Christie to ignore the property tax burden, “carried by most homeowners, and it's wrong that his past budget practices caused a 20 percent increase in property taxes during his two years in office.”  

The budget still has to be voted on and it remains to be seen how the Democratic-controlled legislature will choose.

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