January 26, 2009
 | MALONE: MAKE NO MISTAKE - TAXPAYERS WILL SHOULDER THE BURDEN OF PERMITTING |
After today’s Budget Committee Meeting, where a measure allowing local units of government the option of deferring its contributions to the state pension fund for the next three years was passed, Assembly Republican Budget Officer Joseph Malone stated that no one should be fooled by the budgetary shell game that was endorsed by Democrats at the hearing. The committee’s actions on Monday, which were approved along party lines, will result in the state slashing school aid by $75 million and municipal aid by $15 million.
“The consequences of today’s approvals will ultimately be borne by New Jersey’s property taxpayers,” stated Malone, R- Mercer, Burlington, Monmouth, and Ocean. “The administration’s failure to properly budget for the 2009 fiscal year is now causing a financial backlash, with taxpayers bearing the brunt. The decision to permit delaying required pension fund contributions will have a domino effect, ultimately impacting the hard-working middle class.
“The cutbacks in school aid and municipal aid are not examples of spending cuts, but rather budget gimmicks that will eventually trickle down to taxpayers who will need to make up for the shortfall.
In addition to the Pension Deferral bill (A-3688), the Committee released A-3650, which includes the transferring of $371 million from a debt defeasement account and Long Term Obligation and Capital Expenditure Fund, to the Property Tax Relief Fund (PTRF). Further, the bill will also permit the transfer of $275 million from the Surplus Revenue Fund to the PTRF as well.
“What we saw today was a demonstration of fiscal maneuvering that involved transferring funds from one account to another,” continued Malone. “There were no real cuts in spending. All that was accomplished was putting the onus on taxpayers to make up for the administration’s inability to control expenses. People living in this state will feel the pinch this year, and get a punch in the next fiscal year. I remain adamant that this governor must stop spending.
“It is critical that we learn from recent history and not repeat the fiscal mistakes of prior administrations, particularly what occurred during the McGreevey years, and with some previous administrations in the 1990’s.”
