Lance: Legislators Can Not Justify More Spending

             Senate Republican Leader Leonard Lance, R-23, issued the following statement today regarding the budget for the 2008 fiscal year:

             “The annual state budget is properly the work product of both the Legislature and the Governor. The Legislature has the right, indeed the obligation, to revise the Governor’s proposal to make the budget enacted more responsive to the needs of New Jersey’s residents. 

           Given the state’s precarious financial condition, the Legislature’s priority this June must be to reduce spending. The state has spent itself to the brink of bankruptcy the last five years. Spending is up nearly 50 percent since 2002. This spending explosion has necessitated large tax increases and $22 billion in new borrowing without voter approval.  

          No one can criticize Governor Corzine’s $33.3 billion proposal for not spending enough. In fact his budget recommendation continues the pattern of spending more than the state can afford. New Jersey will continue to have a $2.5 billion structural deficit, the gap between recurring revenues and recurring expenses. The Governor’s suggested surplus is roughly a third of what is generally considered responsible, meaning the slightest economic downturn could have disastrous consequences for the state.   

           In view of New Jersey’s current balance sheet, Republican Senators believe now is not the time for legislators to propose spending additions. We believe the current circumstances obligate the Legislature to reduce spending to a level that can be sustained and have directed our staff to identify potential savings.”