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Legislators will furlough, Union will fight, Corzine looks at rebates

by: Jason Springer

Thu Feb 19, 2009 at 09:27:16 PM EST



There's lots of news on the balancing the budget front today. More people are jumping on the furlough bandwagon:
Senate President Richard J. Codey and Assembly Speaker Joseph J. Roberts Jr. today agreed to honor Gov. Jon S. Corzine's call for a two-day furlough of employee salaries in the legislative branch to close the mounting gap in the state FY 2009 budget.

Under Corzine's plan, employees would be required to take one furlough day in May and one in June to help close the gap in the current budget.

Codey (D-Essex) and Roberts (D-Camden) said they will furlough the Senate and Assembly majority and minority offices in accordance with Corzine's plan.

They said they will also direct the Office of Legislative Services to do the same, while also directing the clerks of each legislative house to research how Senate and Assembly members can furlough two-days of pay and apply the two-day furlough to their district offices.

Their staff are at-will, so they won't have much say in the matter.  Corzine's plan to furlough state workers on the other hand seems to be facing a fight:
Hetty Rosenstein, New Jersey state director for the Communications Workers of America, said the CWA will file an unfair labor practice complaint with the state's Public Employment Relations Commission.

"We think that in fact in our contract we have negotiated an annual wage. We think they need to respect that contract, and the furlough is in fact a violation of that," Rosenstein said. "They're going to try to pretend it's a layoff. Our attorney doesn't think you can gimmick your way out of it."

The governor has indicated layoffs may be the next option.  With or without the furlough, more action will need to be taken to close what is now a $3.6 billion budget deficit.  The Governor's office is apparently now turning to the property tax rebate program:
The governor has repeatedly said all options, including rebates, are on the chopping block as he tries to balance New Jersey's finances, though he has so far declined to discuss rebates specifically. But behind the scenes, discussions on how to trim the rebates are occurring daily, the sources said, because there are very few budget areas left to cut that could save hundreds of millions of dollars.
Everyone is going to feel the pain.  Just because no one is going to be happy with the hard choices that have to be made, doesn't mean we don't have to make them.  Legislators will have a hard time giving up those rebate checks, but if they don't want them to bounce, they may not have a choice.  It's going to be a long budget season.  What do you think the state should do?
Jason Springer :: Legislators will furlough, Union will fight, Corzine looks at rebates
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I think Corzine is on the right track (0.00 / 0)
It's also obvious that the legislators who forced him to devote half the sales tax increase to property taxes were wrong.  


Frank LoBiondo Record and Jon Runyan Watch

On the right track? (0.00 / 0)
If he were a Republican, possibly.

Put a tax surcharge on wealthy who have disposable income.  Don't take it out of those who will use the money to spend.  This is the total opposite of a stimulus plan.

And you talk about the sales tax, what about the corporate tax cut Corzine signed into law a short while ago?


[ Parent ]
You don't seem to get it... (0.00 / 0)
When do you stop taxing? Was it when Jim McGreevey enacted the millionaire's tax "Not one penny of this increase will go to anything but property tax relief" (I think that was the shortest promise on record, maybe that held true for (1) budget cycle)

But even you have to agree there's limit to how much you can raise taxes, right?

Otherwise, why not just bump the personal income tax to 20% and pay for everthing right? Do you see the harm in that?

"Where ever you go, there you are." - Buckaroo Bonzai


[ Parent ]
You don't get it (0.00 / 0)
Balancing the budget during an economic contraction on the backs of those with little or no disposable income rather than on those with plenty of disposal income is a prescription for deepening the downturn.  A surtax on top income earners is not a permanent increase in the tax rates.

[ Parent ]
Let's try this again. (0.00 / 0)
What new level of tax are you considering? What is a 'top income earner'?

It's altogether easy for you to say 'get the money from the rich', without defining anything.



"Where ever you go, there you are." - Buckaroo Bonzai


[ Parent ]
Tax (0.00 / 0)
I'm not in a position to run the numbers.  A 10% increase in the top rate, from under 9% to under 10%, for those with taxable income of $500,000 or more is one possibility.

[ Parent ]
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