New Jersey state budget

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New Jersey faced a $4.3 billion budget deficit (revised down June 2009 from the May 2009 estimate of $4.4 billion)^[1] for FY 2010. Gov. Jon S. Corzine signed the $29 billion FY 2010 budget on June 29, 2009 that was passed by the New Jersey Legislature.^[2] New Jersey's total adjusted FY 2009 budget was $33.2 billion with $19.4 billion in General Fund spending.^[3] The FY 2010 budget that began July 1, 2009 has:^[4][5]

• $4 billion in baseline spending cuts, with more than 850 line items being cut that include:
  • $527 million from State Operations
  • $1.5 billion from Grant-In-Aid
  • $1.2 billion from State Aid using $1 billion of federal stabilization funding
• Increase in education of $300 million

FY 2010 1st Quarter revenues were down 3% from projections collecting $5.95 billion instead of the estimated $6.14 billion the budget was based, creating a $190 million shortfall. Gov. Corzine has ordered department heads to look for $200 million in additional cuts by Dec. 1, 2009.^[6]

[edit] Budget Background

New Jersey's major state revenue sources are:^[7]

• $11.3 billion Income tax, 37%
• $8 billion Sales Tax, 27%
• $3.8 billion "Other" taxes, 12%
• $2 billion Corporation and Bank Tax, 7%
• $929 million State Lottery, 3%

New Jersey's fiscal year begins July 1 and ends June 30 of the following year. The governor reviews individual agency requests along with past and present expenditure and revenue data from November through mid-January. In February the makes his/her final decision and presents a budget recommendation to Legislature on or before the fourth Tuesday in February. The Legislature reviews the recommended budget through a series of hearings and makes any necessary changes to the document. Once both the Assembly and the Senate have approved the bill, it is signed by the governor before July 1, as stated in the state Constitution. The governor does have the power to use line-item veto before signing the bill into law.^[8]

[edit] Budget figures

The following table provides a history of New Jersey's expenditures and gross domestic product (GDP).

• NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
• See New Jersey state budget (2008-2009) for more information.

[edit] Accounting Principles

The Office of the New Jersey State Comptroller is an independent office that audits government finances, reviews the performance of government programs and examines government contracts. The Office was created by legislation March 15, 2007. It is responsible for conducting audits of the executive branch of state government, public institutions of higher education, independent state authorities and local governments and boards of education. Appointed by the Governor, with the advice and consent of the Senate, the State Comptroller serves a six year term and can be reappointed for a second term. All employees of the Office of State Comptroller are barred from engaging in any political activity. Matthew Boxer was sworn in as New Jersey’s first independent state comptroller on Jan. 17, 2008. The audit reports are published online.^[10]

• Audits government finances
• Examines efficiency of government programs
• Scrutinizes government contracts
• Provides audit training to government entities

The Institute for Truth in Accounting (IFTA) rates New Jersey “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider New Jersey's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.^[11] New Jersey's CAFRs prepared are published online by the New Jersey Department of the Treasury, Office of Management and Budget.^[12]

The New Jersey State Treasurer is R. David Rousseau, who was confirmed by the State Senate and sworn in as State Treasurer on April 7, 2008. Rousseau was sworn in as Acting State Treasurer on January 16, 2008, soon after Gov. Jon S. Corzine announced his intention to nominate him to be State Treasurer.^[13]

[edit] Accounting transparency checklist

Comprehensive Balanced budget Timeliness Usability

[edit] The good

• The website has Comprehensive Annual Financial Reports (CAFR) dating back to 1998.^[15]
• An independent auditor’s report is published on page 11 of the document.^[16]
• It provides supplements to the budget workup.^[17]
• The budget is posted using organized and consistent methods of financial reporting.
• New Hampshire law requires a balanced budget, but a deficit is permitted.^[18]
• It includes all costs incurred by the government, including long-term liabilities, starting on page 248 of the document.^[16]
• The CAFR compares estimated and actual budgetary numbers, such as on page 98 of the document.^[16]

[edit] The bad

• The New Jersey office was somewhat tardy in submitting the budget.
• The CAFR is posted in a PDF format, so it’s not searchable online.

[edit] Economic Stimulus Package

New Jersey is expected to receive $1.2 billion from the $787 billion dollar economic stimulus.^[19] All told, the federal stimulus plan would create or save 100,000 jobs in New Jersey, based on White House estimates.^[20]
For more information on how the federal stimulus funds are being used in the state of New Jersey, visit the state recovery website.

According to preliminary reports, New Jersey is expected to receive:

• $609 Million for Title 1 and IDEA (Individuals with Disabilities Education Act)^[21]
• $6.8 Million towards health care services^[22]
• $894 Million towards transportation projects^[23]
• $73.6 Million for energy efficiency and renewable energy projects^[24]
• $2.6 Million for senior nutrition programs^[25]

[edit] Budget transparency

New Jersey currently has no statewide, official spending database online, despite recent attempts to pass legislation that would create a searchable spending database.

[edit] News

• 12/09/08: Yesterday witnessed a transparency press conference at which New Jersey Senators Tom Kean and Joe Pennacchio gathered to support S-445, the "Transparency in Government Act." They, joined by the New Jersey Taxpayers' Association, Grover Norquist, and others, spoke on the importance of transparency in state spending. If passed, S-445 would create a publicly available database containing information on New Jersey's revenues, expenditures, and bond indebtedness. To see a version of S-445, click here.

[edit] Website evaluation

Budget Usability Elected Officials Administrative Officials Ethics Audits Contracts Lobbying Public records Taxes

State.nj.us is the website for the state of New Jersey.

• Main article: Evaluation of state websites

[edit] The good

• Site has a search function and is fairly easy to navigate.
• State tax information is provided.^[26]
• State Comptroller report on taxpayer-funded lobbying is available,^[27] as well as other lobbying reports.^[28]
• Information on ethics is provided.^[29]
• Current state contracts are posted.^[30]
• Includes form for requesting public records.^[31]
• Budget and financial audit reports are published.^[32]
• Elected and administrative officials are listed with contact information under their respective office/department.^[33]

[edit] The bad

• Does not provide agency lobbying contracts.

[edit] Legislation

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary	Exemption Level
New Jersey Transparency

[edit] Economic Stimulus Transparency

• The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.^[34]

• New Jersey will receive an estimated $4,248,900,457 ^[35]

• The economic recovery website to show how legislators and government officials in New Jersey are spending Federal funds is available here.

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.^[36][37]

New Jersey’s number of Congressional Districts grew from 13 to 31, according ARRP's website. Millions of stimulus dollars were distributed to 18 Garden State districts that do not exist, totaling $25,630,567 to "create/save" 574.6 jobs.^[38]

[edit] Public employee salaries

The Asbury Park Press provides employee data for New Jersey, and the Rutgers-Newark Observer has salary data for employees of Rutgers-Newark.

[edit] See Also

New Jersey taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

[edit] References

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	v • d • e State of New Jersey Trenton (capital)
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Divisions	State | List of Counties | List of Cities | List of School Districts | Evaluation of county websites | Evaluation of city websites | Evaluation of school district websites |
Government	New Jersey State Constitution | Executive | House of Representatives | Senate |
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