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$4 billion in New Borrowing Submitted by Governor Murphy is Wholly Irresponsible

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the staff of the Ridgewood blog

Trenton NJ, Several bills up for committee votes today will make the proposed FY2021 budget revision go from bad to worse, the New Jersey Business & Industry Association testified today.

NJBIA Vice President of Government Affairs Christopher Emigholz told the Assembly and Senate Budget committees today that adding another $500 million in borrowing to the already unnecessary $4 billion in borrowing submitted by Gov. Phil Murphy is wholly irresponsible.

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State Revenue Update Undercuts Governor Murphy’s Borrowing Scheme

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the staff of the Ridgewood blog

Trenton NJ, Senator Steven Oroho (R-24) said a State revenue update provided by the Treasury Department yesterday doesn’t support Governor Murphy’s claims that New Jersey is facing a massive budget shortfall that would require $10 billion of borrowing as the governor has repeatedly suggested.  (https://theridgewoodblog.net/deferred-nj-april-tax-payments-track-close-to-expectations/ )

“Treasury’s revenue update clearly demonstrates that the massive $10 billion budget hole predicted by the administration has failed to materialize,” said Oroho, the Senate Republican Budget Officer. “When compared to the original $38 billion budget for 2020, the $200 million decline in revenues from 2019 is little more than a rounding error. The realized revenue data provided by Treasury doesn’t support the governor’s continued insistence that New Jersey needs to borrow billions.”

Continue reading State Revenue Update Undercuts Governor Murphy’s Borrowing Scheme

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Murphy’s Massive Proposed FY 2021 Budget , Just More Taxes

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the staff of the Ridgewood blog

Trenton NJ, NJBIA President and CEO Michele N. Siekerka, Esq. issued the following statement regarding Gov. Phil Murphy’s proposed FY 2021 budget today.

“NJBIA appreciates Governor Murphy’s efforts to prepare a state budget that makes investments in New Jersey’s future, particularly given our state’s considerable fiscal challenges. We support investments in NJ TRANSIT and workforce development proposed today, and await more details on potential public health benefits savings.

Continue reading Murphy’s Massive Proposed FY 2021 Budget , Just More Taxes

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Nearly three quarters of New Jersey certified public accountants surveyed believe the new state budget will harm our economy

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July 20,2018

the staff of the Ridgewood blog

Ridgewood NJ, More than 75 percent of the 921 certified public accountants (CPAs) who were surveyed by the New Jersey Society of CPAs (NJCPA) in July said that New Jersey’s 2019 state budget, which was signed by Governor Murphy on July 1, would have a negative impact on the state’s economy. Thirty-nine percent felt the economy would get “marginally worse,” and 37 percent said it would get “significantly worse.” Fourteen percent said it would have no impact, and only 10 percent said the economy would get either “marginally better” or “significantly better” under the new budget.

The budget consists of $37.4 billion in spending, to be funded in part by instituting a tax increase from 8.97 percent to 10.75 percent on taxpayer income of more than $5 million. The budget also included several significant corporate business tax changes, including a surcharge of 2.5 percent for the next two years and 1.5 percent for the subsequent two years for corporations with income of $1 million or more as well as a new combined reporting system. No change was made to the sales tax rate though a tax will be levied on e-cigarettes and short-term lodging, such as Airbnb.

NJCPA survey respondents cited several reasons why the budget plan will not help the state’s economy over the long term. Taxing millionaires could lead to more residents in high-income brackets leaving the state, said respondents. As one noted, “the outward migration of wealth will continue, and the long-term effect will be disastrous.”

Survey participants also said the tax increases on corporations will not help the hiring process or provide incentives to remain in the state. It will likely make the state less friendly to investors and businesses.

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N.J.’s public pension liability continues to grow

Trenton New Jersey

N.J.’s public pension liability continues to grow
WEDNESDAY, FEBRUARY 26, 2014
BY  JOHN REITMEYER
STATE HO– USE BUREAU
THE RECORD

Among the biggest numbers in Governor Christie’s budget address Tuesday was the $2.25 billion payment into the state’s public employee pension system, a record for New Jersey.

But Christie said more changes are needed, citing Detroit’s bankruptcy last year as a warning of what could come in New Jersey if officials are not proactive. He warned that as pension payments rise in future years, they will take resources from other priorities.

State’s pension problem: According to the latest projections, a $52 billion gap exists between resources and pension promises made to retired and current employees. That unfunded liability arose over the years as governors and lawmakers from both parties — including Christie in his first year — did not make the full payments that actuaries estimated were needed. Benefits were also enhanced at times without being properly funded. Recent investment-market gains — though strong — have not been enough to offset the funding shortfalls.

Benefits changes in 2011: Legislation enacted in 2011 raised pension contributions made by public employees and ended most cost-of-living adjustments for retirees. Christie and lawmakers — including many Democrats — agreed to start working toward making the full, actuarial required payments, phased in over seven years.

What Christie is saying: Along with budgeting a record $2.25 billion payment into the pension system — about four-sevenths of what the actuaries say is needed — Christie challenged lawmakers “to go further.” But he did not offer any specifics or say definitively what reforms he seeks; his new, $34.45 billion budget does not count on more worker givebacks.

– See more at: https://www.northjersey.com/news/247202411_N_J__s_public_pension_liability_continues_to_grow.html#sthash.go2FawAG.dpuf

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AFP says New Jersey is at a crossroads. Our elected leaders in Trenton must work to put New Jersey back on a path to fiscal sanity now

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AFP says New Jersey is at a crossroads. Our elected leaders in Trenton must work to put New Jersey back on a path to fiscal sanity now

AFP

According to Americans for Prosperity this state budget is an opportunity to turn our state around. No longer can Trenton spend and borrow with abandon.  Elected leaders can no longer ignore reports like the one issued last week by Treasury showing that our state debt and unfunded liabilities continue to grow. They can no longer ignore warnings from ratings agencies like Fitch and Moody’s that the current path is unsustainable. They can no longer ignore that our state is in the worst fiscal condition of any state in the nation. And they can no longer ignore that our weak economy and high taxes are leading to economic malaise.

The state has committed itself to a $2.4B payment into the pension system–$1B more than last year. AFP believes making the full pension payment for FY 2015 is the right thing to do, but this should not be accompanied by more borrowing or higher taxes. Those in the Legislature who pushed to make this full payment now need to lay their cuts on the table. Those in the majority party cannot have their cake and eat it, too.

While AFP supports the pension payment, this is not pro-growth policy. New Jerseyans need and deserve tax relief to stimulate economic growth and create jobs. Voices in the majority party, beginning with Assembly Speaker Prieto, argue we cannot afford a tax cut. But we cannot afford NOT to have tax relief.

The fact of the matter is spending has risen almost 14% over the past four years. Our state budget for FY ’14 is $4.5B higher than it was in FY ’11. At the same time our economy has barely grown at a 1% clip. We must streamline the budget now in order to allow hard-working New Jersey families and job creators to keep more of what they earn. Families and businesses have had to do just that since the Great Recession hit and now it’s Trenton’s turn.

Members of the Legislature must also work with Gov. Christie to address the ticking time bomb that is our pension system. Gov. Christie and lawmakers on both sides of the aisle came together in 2010 to enact changes to public employee pension and benefits. This was a step in the right direction but not enough to fix the problem. Additional changes must be put in place to avoid a catastrophe in the future. The current path remains unsustainable and the status quo is unacceptable.

New Jersey is at a crossroads. Our elected leaders in Trenton must work to put New Jersey back on a path to fiscal sanity now.

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