Easiest way out of a pile of debt?

From the Asbury Park Press:

Gov: Budget road gets rougher

Gov. Corzine made his strongest pitch yet Thursday for using a state asset, such as toll roads or the state lottery, to generate a cash infusion, saying New Jersey needs dramatic action to pay for pressing needs such as new schools and expanded health care.

While Corzine said New Jersey can get by this year with no tax hikes and an increase in property tax relief, he warned that ongoing financial problems leave almost no money available to care for the disabled, increase health coverage, preserve open space and pay for rising pension and benefit costs.

“We all have a vision for a brighter New Jersey, but today we can’t afford the investments to make our vision a reality,” Corzine said.

With the highlights of his $33.3 billion budget proposal widely known and mostly uncontroversial, Corzine spent much of his 33-minute address to the Legislature arguing for the potential benefits of “monetizing” state assets to reduce debt and free up money for other priorities.

“Asset monetization gives us the potential to reduce our crushing debt burden and meet New Jersey’s long-term capital needs in a way no other alternative provides,” Corzine said, adding that such a plan could provide nearly $1 billion a year.

The alternatives, Corzine said, are higher taxes or drastic budget cuts. While he did not propose a specific plan for leveraging roads or the lottery into cash, Corzine said the idea would be a continuing focus for his administration.

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9 Responses to Easiest way out of a pile of debt?

  1. BigBill says:

    Selling off assests is the first step of to ward off bankruptcy….but first lets give all the union worker raises….this state is a joke in progress

  2. LL says:

    The Governor bemoaned higher pension and health care costs, but his recent contract with state workers does virtually nothing to improve this situation. The tiny employee contribution of 1.5 percent for health care premiums and an increase in the retirement age for teachers from 55 to 60 for new hires only – may actually worsen the situation because these actions maintain unsustainable benefits that will make genuine reforms, such as transitioning to defined-contribution plans, more difficult.

  3. RentinginNJ says:

    On top of this, the CWA union is supposedly going to recommend to its members that it not ratify the new contract. This means either a strike or Corzine is going to back off on the meager concessions he is asking for.

  4. commanderbobnj says:

    It ‘goes-to-show’ where the bread is buttered in this state—-‘WE’ vote the governor and the state representatives in to represent ‘US’, the citizens who struggle EVERYDAY to pay the TAXES and FEES that this OUT-OF-CONTROL NJ buracracy costs—-AND what does the governor do?? –He rewards the state unions with a 10+ percent raise !!———-
    Instead of DECREASING the amount of pension benefits across the board (Mcgreedy increased it during his administration) together with increasing the contribution costs of health care, corzine instead makes matters worse!!—-There is NO RELIEF IN GOVERNMENT COSTS NOW WHEN WE TRULY NEED IT !——WHY NOT PUSH BACK THE UNIONS AND SHOW TRUE LEADERSHIP ??

    I am not suprised that he took this position. The man ‘BOUGHT’ into the governorship with his millions as he did with the buying into the federal senatorship (remember??) with promising everyone with everything…..maybe ‘HE’ is thinking about going for the presidentcy some day—–you never know !!

    As RentinginNJ says, If one or more of the unions goes on strike over the “issues” that concerns them, well, I say go ahead and strike …If they do go that course and have a REAL JUDGE fine them HEAVILY—That will make– MY DAY–!!!!!!!!!!

  5. nwbergen says:

    Go Commander BOB GO!!!!

    Il say it again…. ”

    We the voters have the power. If you want change vote out the incumbents regardless of you party affiliation at the Local County and State” I will say it again my State Senator McNamara has been in office for over 20 years and it is time for new blood!” Look at the new Allendale Mayor, now there is some fresh blood trying to make a difference.

  6. Lindsey says:

    I’ll keep this short and simple. The sale of public assets is the worst idea in government.

  7. LL says:

    the Governor casually referred to next year’s budget, after the election, which he said is “$2.5 billion in the hole, give or take a few dollars.”This proposed spending plan continues the runaway spending and expansion that has plagued the state for more than a decade, and has brought New Jersey’s overall tax burden to the nation’s highest.Governor Corzine’s assertion that employee salaries and benefits are ‘fixed costs’ outside of budgetary control ignores that over the past decade state full time employees have jumped 14.7 percent to more 80,000. This growth is more than twice the growth in state population.these cost are NOT fixed they can be adjusted NOW

  8. mrb says:

    We can no longer afford government that solves its self-created budgetary crises by constantly reaching into taxpayers’ wallets. We can no longer afford the sort of government that breeds cycle after cycle of political patrons and cronies who corrupt the system and endanger the health and wealth of New Jersey’s citizens in the name of partisan personal and political gain.

  9. mrb says:

    Hey Jon people moving out faster than you can say TAX INCREASE..should tell you something, less people to pay tax means fewer people paying more tax…..and where it stops nobody knows …http://www.unitedvanlines.com/united-newsroom/press-releases/2007/documents/2006-united-migration-study-04-07A.pdf

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