Today, Better Choices for New Jersey launched its campaign against Governor Christie's draconian FY 2011 budget which cuts  vital services and property tax relief for working families while cutting taxes for the very wealthy and corporations. The broad coalition was formed in 2008 by environmental, housing, labor, education and community organizations to call for an end to short-sighted budget cuts and increased investment in New Jersey's future.

 

At a press conference on Tuesday morning outside the Senate Budget Committee Hearing at Bergen Community College, representatives of the 51 member coalition called on legislators and Governor Christie to consider its revenue plan before passing a budget that cuts deeply into health care, higher education, environmental protection, social services, and many other areas crucial to New Jerseyans' quality of life while allowing last year's income tax rate increase on those making above $400,000 per year and the 4% surcharge on the corporate business tax to expire.  

 

"Cuts to municipal and school aid taken together with the revocation of property tax rebates until May 2011 show that the Governor's campaign pledge to reduce property taxes was ultimately hollow. That he is willing to go back on his promise to reduce property taxes in one breath while saying that he will veto any bill that asks more of the wealthy is unconscionable," said Margarita Hernandez, coordinator of Better Choices for New Jersey.

 

The state's budget for FY 2011 attempts to close a multi-billion dollar deficit deferring $1.2 billion in property tax relief till next year, cutting school aid by $821 million and municipal aid by $445 million, and by deferring $3 billion in pension payments. The budget also makes deep cuts in funding to after-school programs, social service providers and higher education, as well as severe reductions to state services across the board.

 

Carrie Puglisi Lara of La Casa de Don Pedro in Newark spoke about how the cuts will impact the services they provide, including job training, legal counsel, and after school programs.

 

"Our New Jersey After 3 programs provides after-school care for over two hundred children between three and six. It keeps children safe and off the streets, improves their educational achievement, and helps working parents stay working. The current budget ends all state support for the programs, and will literally put children on the street."

 

Mary Forsberg, Interim President of New Jersey Policy Perspective, outlined a set of revenue options that could produce $1.65 billion in funds to mitigate some of the more severe budget cuts.

 

The first proposal would restore last year's rate increase on New Jersey's wealthiest. The FY 2010 budget increased the rate on those making $400,000 to $500,000 from 6.37% to 8%, for those making between $500,000 and $1,000,000 to 10.25% from 8.97%, and for those making over $1,000,000 to 10.75% from 8.97%. That rate increase was allowed to lapse and Governor Christie has vowed to veto any bill reinstating it. Restoring the rate increase alone would raise $1 billion.

 

The second measure would triple fees on gas guzzlers that weigh over 5,000 lbs. Registration for SUVs less than two years old would go from $84 to $252, and from $71.50 to $214.50 for vehicles over two years old.

The measure would raise $140 million.

 

The third proposal would reinstate the 4% surcharge on corporate business tax Governor Christie has promised to let expire and raise it to 8% for a total of $160 million in funding.

 

The group also advocated savings by closing tax loopholes for corporations. By reinstating the throwout and regular place of business rules eliminated in 2008, New Jersey could net an additional $149 million in revenue. Suspending the Business Employment Incentive Program (BEIP) for one year would save the state $201 million. And requiring combined reporting of corporations along with all their subsidiaries could boost revenues under the Corporate Business Tax by 10-20%.  

 

"You can respond to shortfalls like these in three ways: you can raise taxes, you can reduce expenditures, or you can opt for a balanced approach that includes increased revenue and responsible savings. Our economic crisis is too severe for just one approach - but the only thing Governor Christie seems willing to do is cut," said Forsberg.

 

Lizette Delgado-Polanco, Director of the SEIU NJ State Council, said that Better Choices for New Jersey will deliver its message through weekly press conferences that highlight the impact of cuts on working families as well as a grassroots campaign that includes including letter-writing, phone calls and online organizing.

 

"We will make sure that the Christie hears us loud and clear.  Real shared sacrifice is asking the wealthiest and corporations to pay their fair share and not breaking his own campaign promise by increasing property taxes for working families," said Delgado-Polanco. 

 

Originally available at: http://www.bluejersey.com/showDiary.do?diaryId=14907