deficit
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Fri Sep 02, 2011 at 09:15:49 PM EDT
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The True Story of a Reckless & Unnecessary $13.3 Million Permanent Tax Hike
Hamilton Township Republican Mayor John Bencivengo and running mates for Council, Kelly Yaede and Kevin Meara have been running (scared) for office since the day they raised taxes by nearly 40% in their first 3 months of office back in 2008.
Frankly, they should be running scared. When elected, they never understood the fiscal situation that they faced thus they had and still have no justification for their enormous nearly 40% tax hike. Even today they personally do not know why they offered a permanent tax hike for a situation that they did not understand.
So, to compensate, as they run for reelection they blame the "other Mayor" for this historic tax hike of nearly 40%. They state that we had faced a "historic fiscal crisis the likes of which Hamilton has never seen." and they needed to raise taxes.
They used generalizations and obscurity to pull off instituting a reckless tax hike, a scam and a disservice on the taxpayers of Hamilton Township. But most disturbing is that they pulled off this reckless tax hike without knowing what the alleged 2007 deficit amount was.
Remarkably, even today, they do not know what the deficit amount was.
Here is how it transpired and here is a narrative of their various claims of various deficit amounts.
They won election to office in 2007 by the "happenstance" that the Trenton Times printed a headline on Election Day 2007 which read- $5M shortfall for Hamilton Red ink revealed in document ordered released http://nl.newsbank.com/nojavas... . I suspect that this headline surprised these three more than it did the then incumbent Mayor. Essentially, they won on an issue that they did not even campaign on, but which they have rigorously seized upon since their reckless 40% tax hike.
They never truly understood the situation left by the former Mayor. As a result, they blunder and they have blundered endlessly in defining for Hamiltonians what this "historic fiscal crisis" was - exactly. So, for the past 4 years they managed to pull out of the wallets of Hamilton residents a cumulative $54 million in extra tax dollars.
If it were not so damaging to the neediest of Hamiltonians and a "defrauding" of all Hamiltonians, the series of different deficit claims that they have uttered would be comical., In all, they have cited four different amounts for what this 2007 deficit was.
In a January 1, 2008 PolitickerNJ article Bencivengo said the deficit was $10 million and Meara and Yaede concurred.
I wish that I could have given a more cheerful address today," said Bencivengo in a nod to the town's $10 million budget deficit. "But even if our fiscal circumstances had been better, even if we had ample surplus, I'd be saying the same things. It should be our goal, no matter the circumstances, to do more with less."
http://www.politickernj.com/be...
What Bencivengo actually said that day was " a budget deficit exceeding $10 million."
At a Township Council meeting on February 6, 2008, then Business Administrator, John Guhl, added $5 million, $1.8 million and $2 million to come up with a deficit total of $14 million??? Granted, I did the math in my head, but I come up with $8.8 million. You can read Mr. Guhl's explanation on page 16 of the Hamilton Township Council Minutes: http://www.hamiltonnj.com/file...
On June 17, 2008, Bencivengo stated that the deficit was $16 million.
Bencivengo heaped praise on Guhl, saying that the exiting administrator had given the township "a turnaround beyond compare" as he attempted to tackle a $16 million budget deficit during his six months in office.
http://www.nj.com/mercer/index...
Then, most recently, in a July 9, 2011 Letter to the Editor of the Trentonian John Bencivengo stated that the 2007 deficit was $5 million!!!
Who can forget the $5 million dollar deficit depicted in the Annual Financial Statement of Fiscal Year 2007?
http://www.trentonian.com/arti...
On top of the fact that Bencivengo, Meara and Yaede are playing games with Hamiltonians by continually hyping up and exaggerating a deficit - they did permanently hike taxes by $13.3 million annually.
Meara said, "but clearly there was a tax increase - I voted for it. At the time with the large deficit we had,
http://www.trentonian.com/arti...
Again, Meara does not offer anything concrete. He only states that that there was a "large deficit".
Bencivengo, Yaede and Meara got away with the tax hike because they offered Hamiltonians only fear and exaggerations. There is, to this day, no clarity on what the actual financial situation was at the beginning of 2008. They obfuscated, dodged and ducked to introduce as a permanent tax increase of $13.3 million. This is an extraordinary amount which, as a temporary tax increase, would have addressed any number of their deficit claims.
In all, the politicians in Hamilton Township government have raised over $80.1 million thru increased taxes, increased fees, lay-offs of public employees (including police) forcing 8 furlough days on police and other employees and by privatizing the Planning & Engineering Department as well as the Ecological facility.
Meanwhile, they have cumulatively increased spending over 4 years by $30 million (so much for doing more with less John Bencivengo).
That's a $50 million gap!. Where the heck are those $50 million?
There are bigger issues in Hamilton Township than paving roads. Hamiltonians have been blatantly lied to for four years - essentially robbed of $50 million through a unwarranted permanent tax hike.
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Tue Aug 09, 2011 at 03:26:44 AM EDT
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Politicians like to talk in abstractions.
Come to think of it, they like to argue and obfuscate in abstractions, as well. They campaign in abstractions and make abstract pledges until those abstractions turn into something tangible, like a subprime lending crisis or a downgrade from a particular private rating agency.
We spend so much time wading through abstractions that we cannot get to the meat of the issues that face us today. Enough of that.
What really happens in a bad economy? And what is the public's role during these tough times?
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Mon Jul 25, 2011 at 08:22:19 PM EDT
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Tom Moran writes a piece today that maybe, sort of, kinda suggests the Republicans may be doing something a little bit, well, not wrong but, you know, ickery.
In a piece noting that slashing the federal budget would cut eleven percent from the already hurting Centers for Disease Control that protect us from things like SARS , teen pregnancy, hospital infections and deadly diseases, he waits until paragraph seven of eight to note the following:
When Republicans say they will not raise any taxes, or even end tax subsidies for oil and gas companies, it means agencies like the CDC take an even deeper hit. And this happens at a time when the federal tax bite is at a post World War II low.
That's right, Tom. These cuts are wholly on the backs of Republicans. If John Boehner would just give an up or done vote on the debt limit with no strings attached it would pass. Instead he and the Republicans are holding the country hostage in order to put our collective health at risk.
Talk about burying the lede. This is a 100% artificial calamity created 100% by the Republicans and 0% by the Democrats, and the result will be things like a country more at risk for a major disease outbreak or biological attack.
But let's keep writing articles that bury the blame, that say both parties are at fault. Because that's what an independent, watchdog media is for -- confusing a perfectly plain issue.
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Sun Jul 10, 2011 at 02:26:28 PM EDT
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John Bencivengo Finally Gives the 2008 Budget Deficit a number - $5 Million
After years of obfuscation about what the amount of debt was when he took office in 2008 John Bencivengo, in a Letter to the Editor of the Trentonian, states, "Who can forget the $5 million dollar deficit depicted in the Annual Financial Statement of Fiscal Year 2007?" http://www.trentonian.com/arti...
Throughout his 3 ½ years in office, John Bencivengo and Hamilton Township's all Republican Council have pointed to a variety of differing amounts in defining what the deficit was.
In a Trenton Times article of June 17, 2008 announcing the appointment of John Ricci as the new Hamilton Towsnhip (Mercer) Business Administrator (in place of John Guhl), " Bencivengo heaped praise on Guhl, saying that the exiting administrator had given the township "a turnaround beyond compare" as he attempted to tackle a $16 million budget deficit during his six months in office."
http://www.nj.com/mercer/index...
John Bencivengo stated in his January 1, 2008 Inaugural Address "we are confronted by the most serious financial crisis in our history, a budget deficit exceeding ten million dollars."
http://www.hamiltonnj.com/file...
The Mayor has finally given Hamilton Township residents a true picture of what the "most serious financial crisis in our history" was that confronted his administration upon taking office in 2008. His comments also put a spotlight on the fact that this $5 million deficit accrued under an all Republican Township Council's watch.
It was the intentional murkiness of defining what the actual deficit was that allowed John Bencivengo and his Township Council to reorganize the Police Department, lay-off and eliminate 55 township positions, impose an 8 day furplough on all township employees and to raise municipal taxes to historic rates.
Now, this November, Township residents can make an informed decision about the incumbent Mayor's and all Republican Township Council's decision to address a $5 million deficit with a permanent $13.3 million tax hike.
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Mon May 16, 2011 at 09:41:47 PM EDT
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In case anyone is still thinks the Republicans like Jon Runyan who voted to abolish Medicare actually care about the deficit, this should wake you up. The CBO analysis of the 'bipartisan' budget deal is out:
A few weeks after they cut the deal, we have an answer. It turns out the six-month spending bill Congress passed in March increased discretionary outlays through the remainder of the fiscal year by a bit over $3 billion. In other words, total direct spending will be higher by the end of September than if Congress had just set spending on autopilot for the remainder of the fiscal year back in April.
Yes, the Republicans threatened to shut down the government for their budget cuts and ended up increasing spending. (The culprit is defense spending.) I'll confess the House Republicans are creating political disasters even faster than I expected. Just don't give up your future so these clowns can give it to someone else.
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Wed Dec 08, 2010 at 06:58:02 PM EST
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Which is worse? A Democratic Party that abandons its ideals of social justice and equal opportunity for all, or a Republican Party that is controlled by greedy and often corrupt Wall Street and oil interests? The answer now is it doesn't matter. It has become apparent that the Democratic Party, at least in the persona of the President, has adopted the Republican platform lock, stock, and barrel.
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Tue Dec 07, 2010 at 11:21:11 AM EST
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My organization, the New Jersey Public Interest Research Group (NJPIRG), recently released a report with the National Taxpayers Union (NTU) proposing $600 billion in federal budget cuts. The NTU is a group that often disagrees with us, and our goal was to create some early consensus on specific budget cuts that target waste, inefficiency, and corporate handouts in the federal government. The report is here.
Everyone knows the federal deficit is important. Yet polls like this show that the deficit continues to be a low priority for Americans.
President Obama's fiscal commission did not quite achieve the super majority vote required to prompt direct congressional action on implementing budget reform. This means that now, more than ever, it is critical for Americans (and New Jerseyans) to press their federal representatives to take serious action.
Yet New Jersey is struggling with many economic problems of its own, and it can be tough to look past city and state budget crises. Yet as long as we put off fixing the federal budget, we will continue to waste our tax dollars, and money that could be used for helpful services or creating solvency will end up in irresponsible subsidies or inefficient programs. What does the Blue Jersey community think about this? Have any of you experienced direct consequences stemming from our federal budget deficit? How can we make the federal deficit a New Jersey priority?
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Thu Nov 18, 2010 at 10:30:00 AM EST
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There is unrest in the forest,
There is trouble with the trees,
For the maples want more sunlight
And the oaks ignore their pleas
I've written a lot about class warfare (as have many others), and how Governor Christie has put forth a class warfare agenda. Sadly, in this case, the sunlight represents very real things such as food, and it isn't just a metaphor, as many New Jerseyans are struggling to pay for food, housing, healthcare and other basic necessities. Tax cuts, in addition to being a horrible stimulator of the economy, don't help families when they have little to no income as is and need a job, help with their mortgage or affordable health care instead of pennies more in their paycheck (if they even have one). These pennies will of course go right to the credit card companies, the oil companies and other corporate entities, continuing the upward redistribution of wealth.
more below the fold
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Mon Nov 08, 2010 at 04:37:51 PM EST
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Welcome back, Ian. - promoted by Rosi
New Jersey Governor Chris Christie's lack of understanding of economics appears to approach the level of John McCain.
Christie, like many Republicans, claims to believe in fiscal responsibility, and says that government shouldn't spend more than it has, just like real families. (I'd like to meet these families). The problem is, these ideas don't work for families and they don't work for our government.
On Meet The Press this past Sunday, Christie said, I mean, we made real hard decisions, and I cut some programs that we would've liked to have kept...But we're broke. We don't have the money anymore.
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Mon Jan 18, 2010 at 12:30:00 PM EST
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By no means are we in great shape, but for the 2nd straight month tax revenues have exeeded estimates and expectations:Better-than-expected income tax collections in December helped New Jersey make up for sagging sales and business taxes, leaving the state's monthly revenue 1.4 percent above expectations, according to a report the Treasury Department released yesterday.
Overall, New Jersey pulled in nearly $2.76 billion in December, up from the $2.72 billion budgeted, according to the report. That gives the state a small reprieve after several months of missed targets prompted outgoing Gov. Jon Corzine to make several emergency spending cuts and readjustments. The sagging sales tax revenues point to some of the additional difficulties facing the economy as it recovers. Here is a breakdown of the tax revenues:
Image courtesy of screenshot during NJN News These numbers are exceeding already lower projections and we are still far off last year:Total revenue in December was down 1 percent from a year ago. Sales tax during the holiday shopping season was down 3.3 percent from a year ago -- which had been the worst holiday sales season in decades -- and 6.4 percent under budget for the month.
The state stands 2.9 percent -- or nearly $373 million -- below budget. The biggest revenue sources are income and sales taxes. So while this is good news in the short term, the long range concerns still continue to persist. At this point, people will probably settle for any good news they can get. They also released some good news on the pension fund front:The state also said after a bad 2008, pension funds finished 2009 up 19.8 percent. You can view the full report from Treasury on the December numbers here.
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Fri Nov 27, 2009 at 05:17:51 PM EST
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Here's an interesting November 19, 2009 press release from Frank LoBiondo saying "LoBiondo Supports Protecting Local Doctors from Cuts to Medicare Payments":
"For the past seven years, I've supported efforts to protect our doctors and their staffs from scheduled Medicare reimbursement cuts, which in the end would affect the care they are able to give their patients. Today, I voted for a plan that would prevent the scheduled doctors' reimbursement cuts, would not add to the deficit, and would ensure future South Jersey seniors are not shouldering the costs. Regrettably, it was not the bill that was approved by the full House today," said LoBiondo.
What's interesting about this? It's not just that LoBiondo voted against getting rid of the cuts, after all, the press release is clear enough. It's not that he claims to have voted for a Republican alternative, when there was no such vote that day. No, those are all in the days work.
The impressive bit of hypocrisy is that the cuts are due to the "Balanced Budget Act of 1997" (H.R. 2015) which, of course, Frank LoBiondo and his Republican colleagues made law. These cuts are entirely his creation! When the Republican party actually cared about deficits -- at least the name of the 1997 law says they did -- they created a "Sustainable Growth Rate" formula which would have reduced the deficit by paying doctors less. Whether it's a good idea or not, I don't know, but it is the law thanks to Frank LoBiondo's 1997 votes, whatever press release he sends out in 2009.
Sadly, we can expect that no reporter will ever notice the contradiction.
Also available at Frank LoBiondo record.
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Fri May 16, 2008 at 10:22:54 PM EDT
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Jon Corzine, fresh from the defeat of his toll-road plan, is now capitulating on his plan to cut aid to small municipalities: When delivering his budget earlier this year, Gov. Jon Corzine said he would cut $169 million in aid to all cities and towns, including $37 million to towns with populations under 10,000. Local officials said the aid loss would lead to property tax hikes.
Earlier this week, the administration said it wanted to restore part of the aid to the small towns to make sure the cuts don't spark property tax increases of $100 or more. Today, the Department of Community Affairs said it would shift dollars from other aid programs to restore $14.9 million to the small towns.
First of all - wft? Is Corzine really so deeply engrossed in the Clinton campaign that it just never occurred to him that state aid cuts would be made up by local property tax hikes? Uh, this guy is a banker, right?
Second, by what logic does it make sense to restore aid to small towns but not to large towns? Oh, there are more people in the bigger cities, so...what, there are more people to make mad?
Take a jump.
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