Department/
Division |
Savings |
Description |
| Legislature |
General Assembly |
$1,000,000 |
All branches of government should be partners in getting the state's fiscal house in order. Reductions have been recommended for the Executive and the Judiciary. The General Assembly must be required to seek efficiencies. Carry forward balances also are available. |
| Office of Legislative Services |
$1,000,000 |
All branches of government should be partners in getting the state's fiscal house in order. Reductions have been recommended for the Executive and the Judiciary. The Office of Legislative Services must be required to seek efficiencies. Carry forward balances also are available. |
| Henry R. Raimondo Legislative Fellowship Program |
$69,000 |
With the state facing a multi-billion structural problem and the specter of taxes being raised, non-essential programs such as this should be suspended for at least one year. |
| Senator Wynona Lipman Chair in Women's Political Leadership |
$100,000 |
With the state facing a multi-billion structural problem and the specter of taxes being raised, non-essential programs such as this should be suspended for at least one year. The funding for other Chairs at the state’s institutions of higher education have been eliminated over the past several years. |
| Intergovernmental Relations Commission |
$436,000 |
With the state facing a multi-billion structural problem and the specter of taxes being raised, non-essential programs such as this should be suspended for at least one year. The functions of the Intergovernmental Relations Commission include participating as a member on regional and national commissions; conferring with officials of others states and the Federal government; formulating proposals for cooperation between this State and other states. |
| New Jersey Law Revision Commission |
$321,000 |
The New Jersey Law Revision Commission was established in 1985 to promote and encourage the clarification and simplification of the laws of New Jersey. The services provided by this entity no longer can be afforded. Simplification of laws can be done by the Office of Legislative Services. |
| Clean Ocean and Shore Trust Commission |
$144,000 |
The Clean Ocean and Shore Trust Commission studies strategies to preserve, protect, maintain and restore the environmental integrity of the Hudson-Raritan estuary and the New York-New Jersey Bight area to enhance coastal tourism. The responsibilities of the Clean Ocean and Shore Trust Commission, if they are determined to be necessary, could be transferred to the Department of Environmental Protection. |
| Total |
$3,070,000 |
|
| Governor's Office |
| Governor's Contingency Fund |
$875,000 |
The Governor's Contingency Fund began more than 100 years ago for the purpose of allowing the Governor to make funds available to address true emergencies. The account has grown considerably and is now rarely, if ever, used to address emergencies. Instead, the fund is used to award grants to a host of organizations. You will remember the press accounts of the spending by Codey in his final month as Governor. The account should be eliminated and true emergencies should be funded by the Legislature. It should be noted that there are no regulations governing the awarding of funds from the Governor's Contingency Fund and their placement with the Governor leads to arbitrary and political awards of money for purposes that are not prioritized with competing needs. |
| Governor's Contingency Fund - Lapse |
$967,845 |
Funds were transferred into the Governor's Contingency Fund to supplement the original appropriation. A portion of these funds remain unspent and should be returned to the General Fund so that the balances are not used inappropriately. |
| Total |
$1,842,845 |
|
| Children and Families |
| UMDNJ School of Osteopathic Medicine Academic Center - Stratford |
$800,000 |
Included in the past three budgets, and proposed for FY 2007, is an appropriation of $800,000 to "support the development of a model comprehensive diagnostic and treatment program to address both the medical and dental needs of children experiencing abuse." This line item is under investigation by the U.S. Attorney. This special and potentially unlawful appropriation should not be funded. |
| New Funding - DSS |
$44,267,000 |
At a time of fiscal distress, the State can not afford new spending. Specific proposals to spend this appropriation have not been vetted. If needed, the State should go back to the courts and negotiate for the necessary time to implement a well thought-out plan. Significant funding has been included in past budgets. Additional resources can not be committed until the Department can prove that the spending will not be wasted on untested programs. |
| Total |
$45,067,000 |
|
| Commerce |
| Consolidation of Economic Programs |
$5,000,000 |
The important functions of the Commerce Commission should be consolidated within the Economic Development Authority (EDA). The EDA is a far more effective economic development entity. Consolidation will eliminate redundancies and overhead costs. Holding the line on taxes is a much better economic development tool than ineffective bureaucratic programs. |
| Urban Enterprise Zones |
$102,000,000 |
The Urban Enterprise Zone (UEZ) Program was created to encourage the "revitalization of certain distressed urban areas." The programs incentives are threefold: (1) A reduced sales tax rate of 3%; (2) Tax credits for participating businesses; and (3) Return of sales tax receipts to the UEZ for approved enterprise zone projects and costs associated with operating the zone. This option would eliminate the revenue sharing component of the UEZ program until a restructuring of this component can be achieved. Recently the State Auditor completed an audit of the Urban Enterprise Zone Program. It found numerous problems with the administration of the various projects including lack of oversight and conflicts of interest for the zone's governing bodies and for others who provide services on the agency's behalf. |
| Total |
$107,000,000 |
|
| Community Affairs |
| State Rental Assistance Program |
$25,000,000 |
The State has proposed increasing rental subsidies by $25 million over the amount appropriated in the FY 2005 Appropriations Act. This option would defer an expansion of the program until the State gets its fiscal house in order. In addition to this new appropriation, the proposed budget includes $15 million in funding for this program from dedicated off-budget funds. In the past there have been problems with DCA's housing programs. Recently, a DCA employee was convicted of stealing Shelter Assistance funding. |
| Smart Future Planning Grants |
$2,295,000 |
Smart Future Grants is a relatively new program that has not undergone any meaningful review since its inception. Some of these grants have been used to fund plans that require the use of Eminent Domain. A delay in awarding grants will allow for a more thorough look at the grant applications. The grants are totally discretionary and lack a statutory basis. They are intended to be nonrecurring, so a delay in the program will not affect funding for any local government. FY 2006 grants have been awarded. |
| Local Finance Review Board - Elimination |
$110,000 |
This is one of the few boards whose members are given a salary. Thus, it has become a place for the politically connected, such as McGreevey former Chief of Staff Jamie Fox, to be appointed so that they may continue to earn pension credit in the state retirement system. In addition to saving State funds, turning the Board's functions over to the professional staff of the Division of Local Government Services will save considerable legal and professional costs borne by property taxpayers who must fund their governing bodies' and their professionals' appearances before the board. This option represents the salary and benefit costs for the Board members. |
| County Prosecutor Funding Initiatiave Pilot Program |
$8,000,000 |
With all local governments facing property tax difficulties, all should be eligible for relief. This program provides property tax relief to targeted local governments, based on nothing but pure political considerations. It should be eliminated and the funding redistributed to all. Funding from this account is distributed to four counties: Camden, Essex, Hudson, Mercer. |
| Trenton Capital City Aid |
$16,500,000 |
With all local governments facing property tax difficulties, all should be eligible for relief. This program provides property tax relief to one local government, based on nothing but pure political considerations. It should be eliminated and the funding redistributed to all. |
| Special Municipal Aid |
$78,400,000 |
With all local governments facing property tax difficulties, all should be eligible for relief. This program provides property tax relief to targeted local governments, based on nothing but pure political considerations. It should be eliminated and the funding redistributed to all. This account was originally created to provide temporary short-term assistance to certain larger cities experiencing temporary fiscal problems. Since that time the program has become a way to reward inefficient and mismanaged municipalities. Funding remains for DCA oversight of the inefficient local governments. Staff should step up and assist these local governments find savings and become self-sustainable. |
| Total |
$130,305,000 |
|
| Corrections |
| Central Office |
$250,000 |
The Department has its own construction managers yet it does not have ongoing building projects. When a construction project arises, the Building Authority should handle oversight of the construction. According to an article in the June 14 Star Ledger, the Department of Corrections removed two employees from the construction unit amidst an investigation into the possible illegal awarding of outside contracts. . |
| State Prisoners Housed in County Jails |
$7,000,000 |
There are fewer prisoners in the State penal system, yet funding provided to counties for housing State prisoners is rising. According to evaluation data included in the Governor's budget proposal, the State prison population continues to decline in FY 2007. There is sufficient space to house most State prisoners in State facilities. $26.778 million remains in the account. |
| Inmate Contributions |
6,000,000 |
Legislation sponsored by Assemblyman Bramnick, A-2334, which is currently pending in the Assembly Appropriations Committee, requires inmates to contribute toward the costs of their incarceration. According to the OLS, there are approximately 15,000 releases of adult inmates from State custody each year. These inmates serve an average custodial term of approximately two years. At an average per capita cost of $28,025, these inmates would be liable for an obligation of $56,050 each with a total amount owed of approximately $840,750,000. However, according to the DOC, because most inmates have little or no assets and their financial situation generally does not improve significantly upon release, the State will be able to recoup only a very small fraction of the costs of support and maintenance. In addition, inmates are assessed various fines and restitution by the courts, the payment of which must be satisfied before the proposed maintenance payment could be made. |
| Life Skills Academy |
$1,500,000 |
During previous budget cycles, questions have arisen about this program. To date, the Legislature has received no documentation or evaluation data concerning how the funding is spent. An audit of this program needs to occur. Funding should be halted until an audit of the program's finances can be accomplished. |
| Eliminate Free Housing for State Employees |
$126,000 |
The FY 2006 Appropriations Act included language requiring the department to collect fair market rent for its departmental housing. During the DOC hearing, the Commissioner admitted that this was not being done. Rent should be collected. |
| Total |
$14,876,000 |
|
| Education |
| Teacher Quality Mentoring |
$2,500,000 |
The mentoring of younger teachers should be done on a voluntary basis by the paid professionals, as is customary in other fields. |
| High Expectations for Learning Proficiency |
10,000,000 |
This aid program, first funded in FY 2005, is directed toward low-income non-Abbott districts requiring additional resources to improve student achievement. $15 million was appropriated in FY 2006. Proposed funding is $10 million for FY 2007. The program is rife with abuses. For example, during fiscal years 2005 and 2006 the funding was not used as intended and instead was rolled into certain school's general funds. One of the Superintendents admitted that if his district received funding in FY 2007 it would be used for general operating expenses. |
| Payments in Lieu of Taxes |
10,000,000 |
Certain developers and others in predominantly urban areas are completely exempt from paying property taxes, but are required to make payments to municipalities and counties in-lieu-of-taxes under various redevelopment agreements. By requiring in-lieu-of-tax payments for schools from those who are currently exempt from supporting schools would have two positive effects. First, those developers and others who are currently exempt from school taxes would have a small incentive to actually care how much is being spent in their local school districts because they will finally be paying a part of the school bill. Second, the payments would allow the State and local taxpayers to receive some relief. In light of the considerable properties in urban areas, such as Newark and Jersey City, that currently do not contribute anything to local schools, considerable costs savings to the State could be realized. It is not unreasonable to believe that $20 million could be obtained from requiring small payments in support of schools from currentlly exempt properties with the State and local taxpayers sharing $10 million each in savings. |
| Abbott-Bordered District Aid |
21,903,000 |
With all local governments facing property tax difficulties, all should be eligible for relief. This program provides property tax relief to targeted local governments, based on nothing but pure political considerations. It should be eliminated and the funding redistributed to all. This appropriation was first included in the FY 2006 budget as special assistance to a few targeted school districts - Bayonne, North Bergen, Weehawken, Clifton, and Hillside. This year Kearny is added. No new state aid program should be developed until the entirety of school funding is reevaluated. |
| Fair Funding for Abbott Districts |
$ 420,000,000 |
This represents a 10% reduction in funding for the so-called Abbott districts. Former Education Commissioner Librera indicated that 13 school districts classified as "Abbotts" no longer meet the criteria established for Abbotts. Spending unique to Abbotts for these districts should be phased down over a period of time. In addition, all current Abbott districts clearly can reduce administrative spending and implement managerial efficiencies equivalent to at least 10% of their administrative costs. Recent abuses that have been previously highlighted include: (1) Teacher salaries exceeding $100,000 in the Newark School District; (2) A $122,000 Public Information Officer in the Newark School District; (3) Superintendents who have spent thousands of dollars on inappropriate travel and dining; (4) Abuses in Camden that range from managerial abuses and payroll abuses to excessive costs for parties at the Tweeter Center, as noted in a State Auditor evaluation in spending and (5) A Superintendent who will receive a $200,000 severance package despite being at the end of her contract and being under criminal investigation. These things make it clear that there is room for efficiencies. Court decisions do not prohibit these redesignations or reductions that do not impact classroom activities. If challenges to these approaches are successful, the State should consider reducing other forms of state aid or eliminating special forms of property tax relief to these districts. |
| New Jersey After 3 |
$12,000,000 |
This program was intended to be funded through private sources. Instead state funding has grown. Reducing the state appropriation will allow the program to go after these private sources. The State will continue to provide $3 million of seed money while the program transitions to private funding. According to the njafter3 website, the organization expects to make approximately $13 million in grants available during FY 2007. |
| Total |
$476,403,000 |
|
| Environmental Protection |
| Passaic River Cleanup Litigation |
$12,000,000 |
This appropriation is intended to support the State's efforts in pursuing natural resource damages from Occidental Chemical for polluting the Passaic River and Newark Bay. This expense is being incurred despite the fact that under the Passaic River Restoration Initiative (PRRI), a cooperative approach led by the U.S. Army Corps of Engineers, with the U.S. Environmental Protection Agency (EPA), and various concerned federal, state and local agencies, is already engaged in a cooperative project planning and development process to identify and apply feasible solutions to achieve environmental restoration and economic revitalization of the Passaic River. The EPA maintains that the cooperative nature of the Passaic River Restoration Initiative is the best course of action to take to achieve clean up of the river. There is a concern that if the DEP moves ahead with this lawsuit, the federal Passaic River Restoration Initiative will fall apart. The EPA does not support this litigation. The proposal requires that the litigation be conducted by in-house attorneys. Any awards will be used to offset the costs associated with the litigation. |
| Total |
$12,000,000 |
|
| Health |
| Family Planning Services |
$2,000,000 |
The appropriation for Family Planning is increasing by $2 million, from $4.89 million to $6.89 million. The increase should be deferred |
| Global Budget Long Term Care Initiative |
$10,000,000 |
With the state facing a multi-billion structural problem and the specter of taxes being raised, programs such as this should be suspended for at least one year. According to the OLS, the number of persons this program will serve will not approach the 6,300 persons statewide currently being served by the Assisted Living Program and Eldercare Initiatives program. Also, as with most new programs, start-up problems and difficulties that affect enrollment and expenditures can be expected. |
| Total |
$12,000,000 |
|
| Higher Education |
| Institute for Advanced Study |
$160,000 |
The Institute for Advanced Study is an "independent, private institution dedicated entirely to the encouragement, support and patronage of learning through research." According to S&P, in a recent bond prospectus, the Institute for Advanced Study has an endowment worthy of a AAA rating. There is no need for the State to subsidize this program. |
| New Jersey Stem Cell Research Institute |
$5,500,000 |
It is inappropriate for the State to step in as a venture capitalist. No matter how beneficial the results this type of funding is best left to the private sector. There has been no shortage of venture capitalists and private sources paying for medical research that promises substantial financial rewards. |
| Total |
$5,660,000 |
|
| In-But-Not-Of Agencies |
| Board of Public Utilities |
$2,000,000 |
$2 million of the funds received by the BPU should be returned to the General Fund to offset indirect costs incurred by the State including defense of a whistle blower lawsuit and other criminal investigations and audits. This can be achieved by cutting the number of confidential employees, whose number has increased by 40 over the past three years.. This would be booked as a revenue. |
| Total |
$2,000,000 |
|
| Interdepartmental Accounts |
| Overtime |
$15,000,000 |
Overtime for each of the past three years has averaged in excess of $200 million, with the FY 2006 figure exceeding $210 million. The Departments needs to re-evaluate their decisions regarding staffing and overtime. For example, the Department of Human Services estimates that it will incur overtime costs of $70 million to cover 2.7 million hours of overtime. The overtime estimate is based on FY 2006 overtime expenditures/hours worked at these facilities. for your information, this amount of overtime equates to 112,500 days or 308 years of overtime. Assuming a work year equals 5 days per each of 52 weeks, minus 15 vacation days and 13 state holidays (no sick time) this amount of overtime equates to 484 years. |
| Cost-of-Living Increases - Eliminate for Higher Paid State Employees |
$116,000,000 |
State employees are scheduled to receive two cost-of-living adjustments during FY 2007, one on July 1 and the other on January 1, 2007. Given the current financial situation of the State, the State should request that employees earning in excess of $60,000 forego these increases. There are 29,000 state employees earning above $60,000. |
| Children's Garden |
$625,000 |
In 2005 an editorial appeared in the Philadelphia Inquirer stating that the operators of the Children's Garden declined a deal with operators of the state aquarium that could have provided at least $350,000 per year for the Children's Garden. The operation of the Children's Garden is more appropriately a private function. |
| New Jersey Performing Arts Center |
$3,500,000 |
Taxpayers gave more than $7 million in direct subsidies to the N.J. Performing Arts Center (NJ PAC) in Newark in FY 2006. NJ PAC uses this money to cover certain operating and debt service costs. In addition, budget language allows NJ PAC to keep the revenue from profitable ventures that it operates instead of using it to pay off loans given to it by the State. Despite the fact that it would go bankrupt without generous taxpayer support, NJ PAC does not seem to care about making sure that each dollar is spent effectively and efficiently. NJ PAC has paid its CEO more than $1 million over the latest two-year period (public IRS filings are available). His pay increased several hundred thousand dollars over just several years. In addition, there are more than a half-dozen vice-presidents at NJ PAC making healthy six figure salaries. Efficiencies at NJ PAC and the use of revenue from its other endeavors could be used to replace this reduction. |
| State Cars - reduce number |
$3,000,000 |
This option would reduce the state car fleet by 1,000. This reduction still enables a state car to be provided to those state workers, including State Police, who are in need of a car on a 24/7 basis. Savings should be achieved through a reduction in the number of cars and the selling of unused cars. In addition, there needs to be a review of drivers assigned to Cabinet officers. According to the Chamber of Commerce Southern New Jersey, the cost of purchasing, maintaining and putting fuel into a single vehicle is at least $3,000 per year. |
| Vehicle Claims Liability Fund |
$500,000 |
A reduction in the number of State employee vehicles and a reduction in the number of unmarked vehicles provided to members of the State Police should result in savings to this account. (OLS recommendation) |
| Sports and Exposition Authority |
$868,000 |
Last year the Codey Administration and the NJSEA "bragged" about how costs at the Authority had been reduced and correspondingly the appropriation to it could be lowered from $28.625 million in FY 2005 to $25.724 million. However, this turned out to be an inaccurate reflection of costs at the NJSEA. A supplemental of $2.529 million is anticipated for FY 2006. The FY 2007 budget proposes an appropriation of $29.121 million for the NJSEA. This reduction would provide the NJSEA with continuation funding of $28.253 million. |
| Savings Attributable to Pension Reform |
$200,000,000 |
There are two ways to bring the pension system into balance: reform benefits or make a significant contribution to cover unfunded liabilities. This option will provide slightly less funding for contributions than proposed by Governor Corzine. It also requires the implementation of the recommendations of the Benefits Review Task Force such as ending pension boosting and tacking; restricting end of career salary hikes, ending pensions for professional service contractors and vendors and prohibiting pension credits for jobs that are less than full time. If just a portion of the Task Force's recommendations are implemented, significant savings will be realized. |
| Interest on Short Term Notes |
$20,000,000 |
A combination of the spending cuts on this list and the higher than anticipated surplus should reduce the need for a portion of the anticipated short-term borrowing. Interest payments will be cut in half. |
| Departmental Efficiencies |
$25,000,000 |
Departments should be required to reduce their non-salary and wage expenses. Departments have excessive costs associated with the hiring of consultants. No-bid service contracts for issuing debt alone has been over $200 million during the past four years. |
| Commissions and Boards |
$3,500,000 |
This option would eliminate compensation and benefits for more than 250 members of various commissions and boards who currently receive enough compensation to be eligible for credit in the State pension system. Examples include the Real Estate Commission, Public Employee Relations Commission, the various licensing boards in the Department of Law and Public Safety and local boards such as the County Tax Boards. Compensation alone is approximately $3 million. Total budget savings, including health benefits savings, would approximate $3.5 million as more than 100 board members (County Tax Boards) receive health benefits. It should be noted that the present value savings to the pension system by eliminating these people from the pension system would be in the tens of millions of dollars. The present value of a single board member earning four years of pension time through one of these boards with a prior salary of $141,000 is approximately $70,000. Seperate legislation would be needed to eliminate compensation and benefits for some, but not all, of the positions. |
| Legislative Priorities |
$300,000,000 |
We fully anticipate to continue to fight the Legislature's insertion of $300 million of legislative pork that will be added to the budget. Similar amounts have been added to each of the past several budgets. In the past pork has given to: (1) A kick-boxing academy in Newark; (2) politically-connected child-care centers in Newark; and (3) organizations in Camden run by convicted felons. |
| Total |
$687,993,000 |
|
| Judiciary |
| Department Reduction |
$5,000,000 |
All branches of government should be partners in getting the state's fiscal house in order. Reductions have been recommended for the Legislature and the Executive. Judiciary must be required to seek efficiencies. |
| Total |
$5,000,000 |
|
| Law and Public Safety |
| Require Local Participation in Crime Enforcement |
$8,180,000 |
As of March 1, 2006, there were 40 enlisted and two civilians assigned to the Camden partnership. In addition, there were 36 enlisted and one civilian assigned to the Irvington partnership for a total of 76 enlisted and three civilian members. The total cost in FY 2006 for the Camden/Irvington Initiative, including the salaries and maintenance for enlisted and civilian, and non-salary costs such as material and supplies, telephone/data lines, vehicle maintenance, fuel and building rental is currently projected to be more than $8.18 million. Currently, $937,643 is budgeted for salaries out of the $1.5 million appropriated. The remaining, substantial salary costs come from the Division of State Police's Direct State Services salary appropriation. If rural communities will be required to pay for State Police coverage, so should urban municipalities. |
| Victms of Crime Compensation Board |
$670,667 |
This option would eliminate the salaries and benefits for the board members of the Victims of Crime Compensation Board. Board members are paid $104,118 and the Chairman is paid $107,118. Members also receive health care benefits and earn pension credit. Recently it has been disclosed that certain board members have missed a large number of days. Other states do not have a paid board. |
| State Domestic Preparedness Equipment Funds |
$5,000,000 |
These grants, which were awarded on a purely partisan basis during fiscal years 2004 and 2005, still have not been totally allocated. The remaining funding should be lapsed. There is no reason for a tax increase when these types of funds remain available to be distributed at the whim of the legislative leadership. |
| Total |
$13,850,667 |
|
| Miscellaneous Commissions |
| Interstate Environmental Commission |
$383,000 |
This commission’s work was essential many years ago in the 1970s prior to the creation of the Department of Environmental Protection. Staff at the DEP can perform the commission’s role easily and admirably. |
| Total |
$383,000 |
|
| Personnel |
| Eliminate Department |
$10,000,000 |
Weak oversight by the department has led to the other departments establishing their own Human Resources divisions. Elimination of the department with a restructuring of its essential services will lead to significant savings. |
| Eliminate political appointees |
$71,000,000 |
A 2/3 reduction in the 1,300 nonessential, nonunionized personnel in the following titles would produce a salary savings of slightly more than $61,000,000. It would also save the health care, pension, and prescription costs associated with a reduction of 850 employees for an additional savings exceeding $10 million for a total savings of at least $71,000,000.
Titles: State Supervising Photographer, Government Representative, Confidential Aide, Aide to the Governor, Senior Executive Service, Legislative Liaison, Confidential Secretary, Confidential Assistant, and Administrative Assistant. |
| Total |
$81,000,000 |
|
| Public Advocate |
| Eliminate Department |
$6,256,000 |
Spending for the programs operated out of the Public Advocate have increased from the $13.164 million expended during FY 2005 to the $19.420 million recommended for FY 2007. The creation of the department was projected to cost an additional $2 million. It seems that that figure has been exceeded in less than one year. |
| Total |
$6,256,000 |
|
| State |
| Eliminate Department |
$4,873,000 |
Over the past several years programs have been created and placed within the Department of State. In reality the Secretary of State has no official duties except keeping the State seal. |
| Cultural Trust |
$720,000 |
This option would defer funding to the Cultural Trust until a time when the states resources and expenditures are in balance. |
| New Jersey Network |
$5,624,000 |
New Jersey Public Broadcasting Authority was created prior to cable, satellite, internet and desktop publishing and it fit the needs of the time. Additionally, Verizon is poised to enter the market. Changing times have allowed NJNs missions to be filled by non-public entities. In addition, New Jersey should put the assets associated with New Jersey Network up for sale or lease. NJN has approximately $5 million in its endowment, which can be used to cover expenses until the assets are sold. Elimination of NJN will also lead to departmental savings as funding no longer will required to be used for advertising that subsidizes the network. |
| Arts Council |
$7,342,000 |
Grant funding is reduced but not eliminated, dropping from $23.342 million to $16 million. This level of funding will allow the Arts Council to continue to provide assistance to local arts venues. Funding provided through the Arts Council to NJ PAC and the Public Broadcasting Authority will be eliminated. These entities have the ability to raise funds on their own. The reduction also includes the elimination of a special grant to the Newark Museum. |
| Historical Commission and Grants |
$6,468,000 |
With the state facing a multi-billion structural problem and the specter of taxes being raised, non-essential programs such as this should be suspended for at least one year. This reduction includes the suspension of special grants for the Battleship NJ, War Memorial and the Old Barracks. This option requires other legislative action. |
| Total |
$25,027,000 |
|
| Transportation |
| Motor Vehicles - Advertising |
$5,000,000 |
MVC pays millions of dollars for public relations including paid media advertisements and glossy brochures to tell people how wonderful MVC is. To the extent that educational services are needed to ensure an efficient motor vehicle experience, the internet and notification inserts are sufficient. |
| Aid to Newark - Road Repair in the Arena District |
|
This funding is included within the TTF. The newly-elected Mayor has stated his opposition to the financing and construction of the arena in Newark. This work should not be undertaken. Instead of being spent by Newark, this $30 million appropriation should be included as part of local aid and shared by all local governments. |
| Total |
$5,000,000 |
|
| Treasury |
| South Jersey Port Corporation - Property Tax Reserve Fund and Debt Service Reserve Fund |
$3,000,000 |
The South Jersey Port Corporation is proposed to receive approximately $10 million. Recent OLS audits have discovered gross mismanagement. The potential of the Port has not been realized and it should be weaned off state subsidies and become fiscally independent. |
| Purchase and Property - Reform |
$500,000 |
OLS Audits have found weaknesses in this Division yet nothing changes. Strong leadership and the implementation of audit recommendations will lead to efficiencies and savings. |
| Reform of the Office of Information Technology |
$20,000,000 |
Weak managerial oversight has led to the individual departments establishing their own technology offices. Spending can be reduced through the elimination of the duplicative services. |
| Property Management & Space Utilization |
$20,000,000 |
The Chamber of Commerce Southern New Jersey presented to the Budget Committee a series of suggestions regarding how to save state money. Included in their recommendations was one to implement private sector best practices in real estate. Please see the Chamber's report for a further elaboration. |
| State Government Procurement Practices |
$150,000,000 |
The Chamber of Commerce Southern New Jersey presented to the Budget Committee a series of suggestions regarding how to save state money. It included recommendations regarding improving procurement practices. Please see the Chamber's report for a further elaboration. |
| Total |
$193,500,000 |
|
| Revenue Options |
| Eliminate Motion Picture Tax Credit |
$10,000,000 |
P.L. 2005, c. 345, formerly S-2533 – Adler/Doria/Sires, provides a tax credit to businesses in an amount equal to 20 percent of the expenses incurred in New Jersey in the production of a feature film, television series or a television show whose length is more than 15 minutes and is meant for a national audience. The value of credits, including tax transfer certificates that may be awarded in any one year may not exceed $10 million. According to fiscal estimates, the amount of movie business conducted in the State prior to the passage of the tax credit already exceeded the value of production needed to achieve the $10 million limit. |
| Anticipated but Unneeded Debt Service payments |
$41,000,000 |
At the time of the budget presentation it was anticipated that this $41 million would be needed for debt service payments for stem cell research or other initiatives supported by cigarette tax bonds. Legislative leadership has determined that the building of stem cell research facilities will not occur. These funds are now available for the General Fund. |
| Accept OLS Revenue Estimates |
$301,200,000 |
The Office of Legislative Services anticipates that revenue collections for fiscal years 2006 and 2007 will exceed by $301 million the estimates of the Administration. |
| Sale or Lease of Unnecessary Property |
$20,000,000 |
A number of these proposals eliminate the need for certain real estate. They should be sold. |
| Total |
$372,200,000 |
|
| Grand Total |
$2,200,433,512 |
|
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