Get News Updates RSS RSS Feed
Get News Updates
Real Estate
Automotive
Employment
Services
Classifieds
Market Place
Media Kit
Forms
Letters June 29, 2006
Search Archives


Gov. must balance needs of citizens, businesses

How long can the taxpayer of New Jersey, whether individual, small business or corporate, be expected to be the sole source of new income to cover New Jersey's extraordinary expenditures and borrowing, both past and present?

We will all know in the next few weeks exactly how the state Legislature will react to this year's deficit and Gov. Jon Corzine's proposed methods of balancing the budget. We will know if we will be paying an additional penny on every taxable item purchased in the state. We will know if our cash-strapped hospitals will have to assume the burden of a $50-per-day bed tax. We will know if there will be a new professional-services tax that will impact the legal, accounting and related professions.

And the single common denominator in all of these proposals is that the individual taxpayer will ultimately bear the financial burden.

Taxing lawyers and accountants, hospitals and consumers will not solve the predicament in which the state finds itself. All of these proposals will raise the cost of living for New Jersey families and individuals. We are the victims of excessive spending, excessive borrowing and short-term financial gimmicks. There is a bigger picture to address before our children discover that they can no longer afford to live and work in New Jersey. We must create a government in balance, one that spends what it earns, minimizes operating costs and limits borrowing.

My concern is the impact of Gov. Corzine's recently introduced $30.9-billion budget, its associated tax increases and the very noticeable limited spending cuts. He has proposed a $13-million cut in extraordinary aid to municipalities, most of which are strapped paying for state-mandated programs. The result is an increased municipal portion of the tax bill.

The governor has cut $11 million in incentives for municipalities to share services, the single most direct action that saves municipal tax dollars. The governor has announced significant funding cuts to colleges and universities, the institutions that prepare our children to enter the workforce and attain a quality job at an affordable wage. Yet, there is no talk about how to save money by making state government smaller, beyond eliminating 1,000 jobs by attrition.

The governor mentioned that "We can't keep spending more than we take in." I agree. But it is time to take a serious look at the expense side and limit reliance on the income side. The mantra must be "balance." State government must create a balance between the needs of our citizens and the needs of our businesses. Without balance, one of the groups will not survive, and without the other, they also will not survive.

John Sawicki

resident

Middlesex County Bar Association