NJ facing $3b budget deficit.. No new taxes?

From the AP:

New Jersey enters 2008 facing major budget woes

With Gov. Jon S. Corzine finalizing plans to increase highway tolls to help solve the state’s chronic fiscal woes, New Jersey enters 2008 with the nation’s third largest budget deficit, according to a new analysis.

Corzine is weighing plans to boost Garden State Parkway and New Jersey Turnpike tolls to pay state debt. He plans to introduce his plan to the Legislature on Jan. 8.

But the state also faces a projected budget deficit of up to $3 billion for the fiscal year that starts July 1, a hole that comes with Democrats looking to increase state aid for schools by about $580 million.

A recent review by the Center on Budget and Policy Priorities found 13 states, including several of the nation’s largest, face budget shortfalls next year. Only California and New York face larger gaps than New Jersey.

California faces a deficit that could be as large as $14 billion, while New York faces a projected $4.3 billion shortfall, the review found.

The center cited housing market troubles as a leading cause for state fiscal woes, cutting sales tax collections from the sales of homes, furniture, appliances and construction materials, but New Jersey has had annual budget deficits since 2001.

It has solved them by, among other moves, increasing income taxes, corporate taxes, cigarette taxes and sales taxes.

In 2006, the Garden State increased sales, corporate, cigarette and other taxes by $1.84 billion, easily the largest total tax increase among states that year, though it avoided tax increases in 2007 when Democrats who control the Legislature faced re-election. They kept their control in last November’s election.

Corzine hasn’t ruled out tax increases in 2008, but hasn’t indicated he will propose increasing any, either. He has noted state taxes are considered high, and The Tax Foundation recently determined New Jersey has the nation’s third-highest tax burden.

Rather, Corzine has asked his administration to present ideas to cut $3 billion from the state’s $33.5 billion budget.

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11 Responses to NJ facing $3b budget deficit.. No new taxes?

  1. Confused In NJ says:

    I Predict: New 2008 Sin Tax by Cody & Corzine. Everyone will be required to get an Annual Physical. Doctor will report Height, Weight & BMI to the State. NJ will Charge a $10 per pound Annual Surcharge for all those exceeding the Average BMI for their Height. All proceeds will go to the State Teachers Fund. Teachers will be exempt from the new requirement.

  2. 3b says:

    The housing down turn will now be blamed for every poor decesion made in NJ over the last few years, both at the state and local level.

  3. Mitchell says:

    #1 you forgot that a credit check will be required before you can live in NJ. If they cant tax every dollar you make then you don’t qualify to live in the state.

    I have said it a million times that NJ is broken way beyond the housing bubble to make it an attractive place to live any more. If it wasn’t for NY it would be a dying state. Throw in CT while were at it. Adding new taxes to balance the budget only makes buying in NJ even less attractive.

    Didn’t anyone learn from the Florio mess? Whitman wasn’t great but she didn’t implode the state like the Democrats did. The only answer any of them know is more taxes, higher tolls, more more more.

    You might make 200K in NJ but your take home might be less than other areas of the country that don’t make nearly as much. The primary concern I hear of everyone in NJ is I cant make as much money in other places but when they run the numbers they find out they take home more living is places that don’t cost nearly as much because the taxes (Sales, property, etc), commute (tolls, distrance), insurance(Health and Car), lower tax bracket make a huge difference.

  4. Ann says:

    Albert Einstein once said, “only two things are infinite: the universe and human stupidity”. We got a good dose of what many would call “human stupidity” last week in New Jersey when 5 un-elected members of the Public Health Council (PHC) voted to mandate four new vaccines for children. The vaccines that will be mandated in 2008 include: the influenza vaccine, pneumococcal, meningococcal, tetanus, diphtheria and acellular pertusis (Tdap) vaccine. Two of the vaccines, influenza and Sanofi Pasteur’s meningococcal vaccine (Menomune) contain thimerosal (mercury).

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    In spite of a week’s long protest from constituents that included parents, physicians and dozens of organizations, the State Health Commissioner gave his “seal of approval” on Friday, December 15.

    Today I want to appeal to New Jersey Governor Corzine to re-evaluate these recommendations and carefully consider the ramifications for New Jersey’s children.

    Unless Governor Corzine, the state legislature, or perhaps a judge intervenes, New Jersey will go down in history as the first state in the nation, for that matter the world, to order parents to vaccinate their preschoolers with a known developmental neurotoxin, which many parents, physicians and scientific research suggest is linked to the epidemic of developmental disorders, including autism

  5. MS says:

    Yup – I agree with Ann. Making a flu shot (which contain a form of mercury) mandatory for preschoolers is incredibly stupid.
    I am VERY glad my kids are older.

  6. bruiser says:

    I voted for Corzine thinking that he being from the business world would see how bad our State finances were, and would be able to reduce expenses given a finite revenue stream in order to right the ship. Unfortunately he sees taxes as an easily increased revenue stream, and state spending as an expense account that needs to be maxed out in order to stay elected. Even those above politics get sucked into this vortex.

  7. Greg says:

    A collapsing US Dollar will eventually force NJ and the country to live within its means. Its just a matter of time.

  8. Anne S says:

    what ever happened to ‘stop spending’? that’s a better way then to keep increasing taxes

  9. If you tell the truth, you don’t have to remember anything.

  10. It is not best that we should all think alike; it is a difference of opinion that makes horse races.

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