Tuesday, May 12, 2009

NJ Can Save Tax $$$

Given New Jersey's $1.2 billion deficit, Senate Republican Budget Member Marcia Karrow (R-Hunterdon and Warren) is reminding Governor Jon Corzine of five budget savings ideas offered by Republicans over the last few years. After rejecting many Republican ideas for savings and labeling them as nonsense or impossible toimplement, the governor has adopted a handful of them over the last few months as he struggled to deal with the budget crisis he helped create.

Senator Karrow wants to remind him of these other ideas and says she will volunteer more if the governor needs them after implementing the following:

1. Reduce Spending on Special Municipal Aid $107,305,000

Over the past six years, a handful of municipalities received state aid from a program whose funding increased from $38 million to more than $145 million. At the same time, aid for many other municipalities has slashed by the governor. The Special Municipal Aid Program has been the subject of harsh criticism in a State Auditor’s Report which noted: (1) no objective criteria exists to guide awards; (2) financial recovery plans for recipients have not been prepared as required by law; (3) hearings have not been held to determine if towns should be subject to a fiscal review board as required by law; and (4) grants recommended by staff are subject to “managerial override” (political manipulation). It is clear that the original purpose of the program is no longer adhered to and it has become little more than a source of cash for politically connected municipalities.

2. Eliminate Political Appointees $68,481,000

Over the past four months, the Governor has hired 10 new employees in his own office, despite a hiring freeze everywhere else in state government. The list of new hires since January include: (1) a new aide in the Office of Intergovernmental Affairs who was previously a Hudson County Coordinator for the Clinton campaign and paid employee of the Democratic State Committee; (2) a new “cabinet liaison officer” who was a former employee of the State Democratic Party and page at the 2008 Presidential Primary; (3) a new “briefing aide” in the Office of Operations (actually paid for with transportation funds) whose resume indicates he was a field coordinator for the New Jersey Democrat Party and for the Stender for Congress Campaign, the Greenstein and Benson forAssembly Campaign, Carden for Congress; and (4) a new “outreach coordinator” in the chief of staff’s Office who was an organizer in the Obama campaign;It is not claimed that all of the employees in these positions should be fired. In fact, some of these people perform valuable functions, but political appointees are clearly employed in these titles – most of which are outside civil service laws and competitive hiring requirements.

3. County Prosecutor Funding Initiative Pilot Program $8,000,000

This program provides a subsidy to four counties (Camden, Essex, Hudson, and Mercer) based on nothing but pure partisan concerns. It is a slush fund disguised as a policy program.

4. End Compensation to Members of Commissions, Boards $4,000,000

Hundreds of politically connected people who occasionally meet as they serve on various state boards and commissions, receive pension credit and health benefits as if they are full time employees. Individuals on these commissions are eligible for a full year of pension credit, provided they were hired prior to recent pension reforms. They should be removed from the underfunded pension systems so the resources can be used for hard-working career employees. Examples of boards that offer pension benefits are the Local Finance Board, 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. Total budget savings, would include up to $4 million in salary savings and health benefits costs.

5. Eliminate the New Jersey Law Revision Commission $400,000

The New Jersey Law Revision Commission was established in 1985 to promote and encourage the clarification and simplification of the laws of New Jersey. This function can adequately be performed by existing staff in the Office of Legislative Services.

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