New Jersey state budget
From Sunshine Review
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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).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $54.5 [9] | $344.8 [9] |
| 2001 | $59.4 [9] | $363.0 [9] |
| 2002 | $64.2 [9] | $372.8 [9] |
| 2003 | $68.4 [9] | $389.1 [9] |
| 2004 | $72.6 [9] | $410.1 [9] |
| 2005 | $79.8 [9] | $425.5 [9] |
| 2006 | $82.9 [9] | $448.4 [9] |
| 2007 | $85.6 [9] | $465.5 [9] |
| 2008 | $88.5 [9] | $480.9 [9] |
| 2009 | $91.5* [9] | $480.1* [9] |
- 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]
| Credit Rating | Fitch | Moody's | S&P |
| New Jersey[14] | AA- | Aa3 | AA |
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Economic Stimulus Package
New Jersey is expected to receive $1.2 billion from the $787 billion dollar economic stimulus.[15] All told, the federal stimulus plan would create or save 100,000 jobs in New Jersey, based on White House estimates.[16]
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)[17]
- $6.8 Million towards health care services[18]
- $894 Million towards transportation projects[19]
- $73.6 Million for energy efficiency and renewable energy projects[20]
- $2.6 Million for senior nutrition programs[21]
[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] Legislation
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act 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.[22]
- New Jersey will receive an estimated $4,248,900,457 [23]
- The economic recovery website to show how legislators and government officials in New Jersey are spending Federal funds is available here.
[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
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Center for Policy Research of New Jersey
- New Jersey Department of the Treasury, Office of Budget and Management
- Governor Corzine's 2009 Budget Address
- New Jersey Legislature
- New Jersey state site
- New Jersey Americans for Prosperity
- New Jersey Transparency in Government Act
[edit] Additional reading
- Gov. Corzine,"State of the State Address 2009," January 13,2009
- Gov. Corzine,"The FY 2010 Budget Address," March 10,2009
- State of New Jersey,"FY 2010 Budget," retrieved June 5,2009
- State of New Jersey,"FY 2010 Revenues, State budget update," May 19,2009
- Reuters,"NJ to use $2 bln credit line to avoid cash crunch," June 3,2009
- The Heartland Institute:Budget & Tax News,"New Jersey Budget Relies on Questionable Revenue, Cuts," June 2009
- Associated Pres,"N.J. Assembly Republicans to oppose Gov. Corzine's budget," May 21,2009
[edit] References
- ↑ National Conference of State Legislatures, “State Budget Update: July 2009”
- ↑ Gov. Corzine Press Release, "Governor Corzine Signs $29 Billion State Budget That Reflects Ethic of Shared Responsibility," June 29, 2009
- ↑ New Jersey Office of Management and Budget, "FY 2010 Summaries of Appropriations," March 31, 2009
- ↑ Gov. Corzine Press Release, "Budget in Brief," March 19, 2009
- ↑ New Jersey Office of Management and Budget, "FY 2010 Summaries of Appropriations," March 31, 2009
- ↑ NJ.com, "N.J. revenue is 3 percent below $6.14B projected budget," October 19, 2009
- ↑ New Jersey Office of Management and Budget, "FY 2010 Summaries of Appropriations," March 31, 2009
- ↑ State of New Jersey,"The State Budget Process," retrieved June 5,2009
- ↑ 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 US Government Spending,"New Jersey State and Local spending," retrieved June 3,2009
- ↑ New Jersey State Comptroller Web site, retrieved November 1, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ New Jersey Department of the Treasury, Office of Management and Budget Web site, retrieved November 1, 2009
- ↑ New Jersey State Treasurer Web site, retrieved November 1, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ NorthJersey.com,"Lawmakers get breakdown of where NJ stimulus money is going," March 12,2009
- ↑ American Recovery and Reinvestment Act,"Impact," retrieved June 3,2009
- ↑ Gov. Corzine,"Governor Corzine Announces $609 Million in American Recovery and Investment Act Funds for Title I and IDEA," April 16,2009
- ↑ Gov. Corzine,"Governor Announces New Jersey Health Centers To Receive $6.8 Million In Federal Funds," March 30,2009
- ↑ Gov. Corzine,"Governor Corzine Announces $894 Million In New Jersey Transportation Projects," March 5,2009
- ↑ Gov. Corzine,"Governor Corzine Announces $73.6 Million in U.S. Department of Energy Stimulus Funding," May 14,2009
- ↑ Gov. Corzine,"Commissioner Howard Highlights $2.6 Million in Recovery Funding for Senior Nutrition Programs," May 15,2009
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State", April 23,2009
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