REPUBLICAN BUDGET MEMBERS: BUDGET IS FULL OF TAX HIKES, BUT STILL SEEMS TO LACK SPENDING CUTS

TREASURER ACKNOWLEDGES BUDGET LACKS SIGNIFICANT CUTS
June 1, 2006
Assemblyman Joseph Malone/609-298-6250
Assemblyman Frank Blee/609-407-0407
Assemblyman Kevin O'Toole/973-696-2323
Assemblywoman Alison Littell McHose/973-726-0954

REPUBLICAN BUDGET MEMBERS: BUDGET IS FULL OF TAX HIKES, BUT STILL SEEMS TO LACK SPENDING CUTS

TREASURER ACKNOWLEDGES BUDGET LACKS SIGNIFICANT CUTS

Assembly Republican Budget Officer Joe Malone today said he was not surprised that State Treasurer Bradley Abelow acknowledged under questioning from budget committee members that there were no major cuts to state operations in Governor Corzine’s $30.8 billion spending proposal.

"The administration would rather hike taxes, impose taxes on hospital care and cut higher education funding than tackle the monster our state government bureaucracy has become," said Malone, R-Burlington, Ocean, Monmouth and Mercer. "Every year we hear about living within your means, but while the government spending machine keeps churning, it is the taxpayers who end up paying more."

Under questioning from Malone, Abelow said that the budget doesn't include major cuts in state operations such as consolidation of state departments, elimination of departments, or restructuring of the state workforce.

While this budget proposes to increase nearly $2 billion in taxes while cutting funding for higher education and freezing aid to school districts, it also manages to increase state spending by $2.8 billion and contains few significant changes to the state bureaucracy.

"The question for taxpayers is, how much of the $9 billion increase in spending in the past five years has made it into your town?" said Assemblyman Frank Blee, R-Atlantic. "Has there been more aid for their schools, more property tax relief, more programs and services? I think most taxpayers would have to answer 'no' to most of those questions."

Assemblyman Kevin O'Toole, R-Essex, Passaic, and Bergen, suggested that the tax increases are a direct result of the administration's unwillingness to make serious changes to the state bureaucracy.

"If we were to streamline state government, reform our pension system and cut the rampant waste and abuse of tax dollars, I don't believe we would need any of these tax hikes," O'Toole said. "We need to be more responsive to the realities of our current fiscal condition and stop turning to higher taxes as a way to avoid making hard decisions."

"If we are going to be successful in rolling back the Governor's tax hike proposals we need to start cutting wasteful spending from this budget immediately," said Assemblywoman Alison Littell McHose, R-Sussex, Morris and Hunterdon. "Every family will have to readjust its budget to deal with these higher taxes. Why can't government readjust its budget to avoid these tax hikes?"

The Republican members noted that it is possible to reduce the size of the state budget, pointing out that three times during the 1990's, when Republicans controlled the Legislature, they actually reduced the size of the budget. The budget reductions took place in Fiscal Years 1993, 1995, and 1997.

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