Corzine aims to avoid tax hikes and balance budget without selling the Turnpike

[Doondoo]

Last year he insisted on raising the sales tax to help balance the state budget. This year Gov. Jon Corzine has a different goal: to produce the first budget in six years with no tax increase. All the numbers haven't been crunched yet, but administration and legislative officials say Corzine is pushing to avoid new taxes in a year when the Senate and Assembly are up for election.

The budget Corzine plans to unveil Thursday also is not expected to include selling, leasing or borrowing against major state assets like the New Jersey Turnpike -- but several sources said the governor is zeroing in on such a plan for future years.

Legislative leaders say they are counting on the governor to propose several hundred million extra dollars for schools. Senate President Richard Codey (D-Essex) said he was told there would be an increase in aid for all school districts, urban and suburban alike.

"Everybody this year will get some bones," Codey said. "It's nothing dramatic, but certainly welcome after five years" in which most districts have seen state aid essentially frozen.

Revenue growth that normally occurs when residents' incomes rise will help Corzine close a projected budget gap of $2 billion. But an assortment of spending cuts also will be needed, said an administration source who asked not to be identified because the governor's address is supposed to be the first official word of the budget. The official confirmed a no-new-taxes budget is the goal, but refused to elaborate on cuts because final decisions are still being made. Lawmakers in both parties agreed the Democratic governor should forsake tax increases.

"I think it's essential there be no new taxes, and I'm hopeful the governor is able to recommend a budget that does not create new taxes or raise existing taxes," said Assembly Speaker Joseph Roberts (D-Camden), who also said he would insist on more school aid.


http://www.nj.com/news/ledger/index.ssf?/base/news-11/117177773397300.xml&coll=1

[mcscajun]

1. If he wants to borrow against the NJT, that wouldn't bother me. Selling it?

Leasing it, even; that I am completely opposed to.

I thought Privatization was a Republican value. :(

I also wonder if there isn't some obscure Federal issue precluding such a sale, as the NJT is part of the Interstate Highway System. True, the Federal government doesn't own so much as a mile of the NJT, or any other state-owned, state-controlled highway, but I still wonder if they don't have some kind of say.

[Robson]

2. Burn the furniture to keep warm

If Corzine's oligarch buddies can make a profit by running the turnpike, then so can the state. It is a public asset that brings in cash flow and ensures that the public will not be raped by tolls.

Corzine is using the excuse that the state needs the money while he'll likely offer it to his private equity oligarch friends for much less than it is worth. This is essentially burning the furniture to stay warm.

Check out the Russian oligarchs to see how they were able to steal their country's assets with the help of politicians such as Corzine. When we allow our politicians to sell our property, rest assured that it will be us that gets screwed, while their cronies will get the spoils.

http://www.counterpunch.org/avnery08032004.html