What would you do with 7.7 million dollars?
Are your property and state taxes going up by 13%?
The questions are related, and you should be outraged.
Let's put ourselves in Governor Corzine's mindset by reading what he said in his
Governor's Statement to the FY09 Budget (many links in this post are in PDF).
Emphasis in this text block is mine, to highlight things I'll talk about later.
The $32.87 billion budget I signed today makes a clear turn towards long-term fiscal responsibility, rather than continuing the past practices of pushing tough budget choices off until the future.
The Fiscal Year (FY) 2009 budget makes an unprecedented cut of $600 million from the budget I signed last year, the largest absolute reduction in State history. It relies on nearly $3 billion of actions to reduce spending to offset the mandatory and inflationary growth in the budget in order to achieve the overall $600 million reduction.
This budget reduces the size and cost of government and allocates necessary reductions in a fair and equitable manner....
In February, when I delivered an austere budget message for Fiscal Year 2009, I stated that we were facing a structural gap of approximately $3.2 billion between our expected revenues...and our anticipated spending..., based on mandatory spending and inflationary increases....
In May, the State Treasurer updated the revenue and spending projections and announced an additional gap of approximately $200 million between spending and revenues. This increased structural gap again was closed primarily with spending reductions and adjustments to areas of the budget that were projected to increase. The most important of those new reductions came from our paydown of $650 million of debt, allowing a decrease of spending on debt service by $135 million.
This budget reduces the cost of State government by nearly $300 million...In this regard, the budget provides for a reduction in the operating funds for every Executive Branch department. Departmental budgets have been directly reduced by approximately $184 million, or by an average of about 5% each.
That $7.7MM I mentioned is .02% of the total budget, or 0.24% of the expected gap in revenues.
It's 1% of the $650MM debt paydown, and 5.7% of the amount that we pay just to service our debt.
It's 2.6% of the $300MM that Corzine cut out of the state budget, and 4% of the departmental budget cuts.
What if you really wanted to spend the $7.7MM instead of using it to be fiscally responsible by paying down debt?
Well, despite the Governor's claims of austerity, there
are places in the budget with net increases. He says that the budget "protects vital programs" such as "property tax relief and school funding" and "vital programs that improve public safety, protect vulnerable citizens, and otherwise meet the needs of the citizens of this State."
Like what, you ask? Please note that I am not, for the purposes of this post, arguing against any of the following allocations:
- $2 million for the purchase of 250 new state trooper vehicles
- $3.5 million for a new State Police recruit training class that will graduate approximately 100 new troopers
- $8 million for an expansion of the NJ FamilyCare program
- $12.5 million to DDD to provide community residential placements and home-based services to persons on the Community Services Waiting List
- $15 million to Division of Mental Health Services for housing and support services for 200 people currently residing at five state mental health hospitals and 100 clients currently living in the community
- $15.5 million to annualize placement and day program costs for 100 developmental center clients transitioned in FY 2008.
- $24 million for the Division of Developmental Disabilities (DDD) to transition 125 clients from the seven state developmental centers into community residential placements and day programs
- $52.5 million for the State Rental Assistance Program, $19 million of which will continue support to 2,100 currently subsidized families and $15 million of which will provide vouchers for 1,500 additional families
- $60 million as an additional subsidy to NJ Transit, a 20% increase from the $298.2 million subsidy in FY 2008.
And
"vital programs" like Planned Parenthood Federation of America, which
received 7,700,000 dollars from the State of New Jersey. Not only did they get to keep their money, they got an
increase of a quarter-million dollars from the state.
This is completely free money to them, by the way, because they're a tax exempt organization.
Planned Parenthood's annual report says that they have excess funds to the tune of one hundred fifteen million dollars ($114,800,000), while you're being asked to cope with property tax increases because Governor Corzine wants to pay them eight million dollars ($8,000,000) that he won't give to municipalities.
Don't take my word for it.
Download the annual report and take a look at page 14, where it shows Government Grants and Contracts at $337MM (one-third of their operating budget), excess of revenue over expenses at $115MM, and an increase in net assets year over year from $839MM to $951MM, or 13%.
Is the 13% profit that Planned Parenthood had this year more or less than the increase in your property taxes?
This is the "clear turn towards long-term fiscal responsibility", the "unprecedented cut of $600 million", the "mandatory and inflationary growth", an allocation of "necessary reductions in a fair and equitable manner", an "austere budget".
Register your disgust with your assemblymen and state senators, and send a message to the governor
here. This was my message:
I understand that almost $8MM is allocated in the state budget for Planned Parenthood, an organization that has profits of $115MM. I further understand that this is an increase of almost a quarter-million dollars from the FY08 budget. This funding should be cut completely, immediately, rather than allow to grow.
At a time when we claim to be working in austerity conditions, and when we are talking about additional taxes being placed on industry to make up shortfalls, and when property taxes are rising to compensate for decreased state subsidies, it's unconscionable that we provide corporate welfare to any organization such that they have excess money and we citizens do not.
Thank you.
Jake Freivald
[Address redacted]
Full disclosure: I hate Planned Parenthood and am firmly pro-life. But this is something that you should be outraged at regardless of your position on abortion.
Labels: Budget, Corzine, new jersey business, New Jersey Taxes, wasted spending