N.J. headed for government contraction, experts say

N.J. headed for government contraction, experts say

In many ways, the New Jersey residents now know will disappear within five years because of yawning government budget gaps, a panel of top experts said Friday.

The bipartisan group of former officials and academics presented a dark view of the state’s future that included widespread government consolidation, worker layoffs, service cuts and tax increases. Experts said that future was nearly certain to come to pass, even with a rosy economic scenario.

Recent pension and benefit reforms, and a tougher property tax cap will not prevent the state from experiencing dramatic changes in New Jersey government, they said. That’s because the state will need five years for tax revenues to catch up to where they were before the great recession.  (Method, Gannett)

http://www.app.com/article/20111210/NJNEWS1002/312100035/NJ-headed-government-contraction-experts-say

N.J. towns turn to fees, staff cuts following loss of state aid, survey finds

N.J. towns turn to fees, staff cuts following loss of state aid, survey finds

Faced with a loss of state aid and new limits on how much they can collect in property taxes, New Jersey towns are turning to other ways to make money — like fees on recreation, parking and garbage pickup — a survey has found.

About a third of the state's 566 towns responded to the survey by the New Jersey League of Municipalities and Rutgers University. Of those, 47 percent had increased or added user fees this year.

An overwhelming majority reported sharing services and cutting staff to trim costs, but towns are also thinking about collecting revenue from other sources to help cope with the 2 percent cap on property taxes that went into effect in January.  (DeMarco, The Star-Ledger)

http://www.nj.com/news/index.ssf/2011/12/nj_towns_turn_to_fees_staff_cu.html

N.J. bond debt rises 3.1 percent

N.J. bond debt rises 3.1 percent

New Jersey’s bonded debt, already the fourth-highest per capita in the nation, increased 3.1 percent to $38.1 billion in the fiscal year that ended in June, according to a state debt report released Friday.

It was the slowest rate of increase in four years.

However, other forms of debt and long-term obligations, such as accumulated sick time, pension benefits and health benefit costs, rose 28 percent to $26.7 billion. That’s more than twice the $10.5 billion in such liabilities posted in fiscal year 2008.

Pension and post-employment health benefits drove the numbers upward for non-bonded debt. Post-employment health benefits, for example, increased from $10 billion to $13.5 billion.  (Method, Gannett)

http://www.app.com/article/C0/20111203/NJNEWS1002/312030016/N-J-bond-debt-rises-3-1-percent

N.J. treasurer: $1.2 trillion in federal savings would not significantly hurt state budget

N.J. treasurer: $1.2 trillion in federal savings would not significantly hurt state budget

State Treasurer Andrew P. Sidamon-Eristoff said Wednesday the $1.2 trillion in federal spending cuts triggered by a congressional committee’s failure to reach a deficit reduction agreement would not significantly harm New Jersey’s budget.

The bipartisan panel, which was established this summer, failed to reach an agreement earlier in the week, setting off a default plan to make across-the-board-spending cuts.

The reductions in spending will come from the military budget and a host of domestic programs. But Social Security, Medicaid, food stamps and other federal programs, which states rely heavily on, were spared from the budget ax.  (Renshaw, The Star-Ledger)

http://www.nj.com/news/index.ssf/2011/11/nj_treasurer_12_trillion_in_sa.html

Christie accuses non-partisan office of putting out faulty revenue figures

Christie accuses non-partisan office of putting out faulty revenue figures

Governor Christie lashed out at the non-partisan Office of Legislative Services Monday, saying they owe him an "apology" for putting out inflated revenue projections to help Democrats score political points.

"They are the handmaiden of the majority," Christie said in a news conference after being asked about sluggish revenue collections that have put the state in a $210 million hole after the first four months of the fiscal year.

Democrats relied on the more optimistic revenue projections provided in part by the Office of Legislative Services to help add roughly $1 billion in spending to the 2012 budget, but most of the additional spending was vetoed by Christie. At the time, Christie said the numbers were fictitious. 

Democrats spent the campaign season blasting Christie for the cuts, painting him as a person out of touch with the state's middle and working class residents.  (Renshaw, The Star-Ledger)

http://www.northjersey.com/news/politics/Christie_accuses_non-partisan_office_of_putting_out_faulty_revenue_figures.html

N.J. officials debate budget cuts as state revenue continues to fall short of projections

N.J. officials debate budget cuts as state revenue continues to fall short of projections

New Jersey’s revenue collections continue to fall short of projections, but whether the decline is related to severe weather or a stormy economy – or combination of both – is still uncertain. But no matter the cause, the steady declines have raised the possibility that the state might have to consider painful mid-year cuts to pay its bills.

“I am not ruling that out, but it’s too early to say.” said Assemblyman Declan O’Scanlon (R-Monmouth), the ranking Republican on the Assembly Budget Committee. “We just have to keep an eye on the numbers, and see if the economy and Wall Street bounces back, but we’ll be ready to act.”

October revenue collections fell 3 percent short of projections, the third consecutive month the state has missed its target, according to figures released yesterday. Overall, the state has $210 million less revenue than it expected to collect in the first four months of the budget year, figures show.  (Renshaw, The Star-Ledger)

http://www.nj.com/news/index.ssf/2011/11/nj_officials_debate_budget_cut.html

Strong outflows take toll on state pension fund

Strong outflows take toll on state pension fund

New Jersey’s pension fund for government workers might be compared with a boat where rowers strain their oars to advance against a roiling current.

The pension fund, in total, gained a whopping 18 percent in its investments in the fiscal year that ended June 30.

But while state money managers pulled hard, they were faced with strong outflows: the fund had to pay out $7.7 billion more in benefits than it took in from contributions in that same time.

As stock markets fell in the past quarter ending Sept. 30, the fund’s investments slumped by nearly 7 percent and it had to pay out another $1.8 billion in benefits.

“They’re doing worse than treading water, and that’s not a surprise,” said New York-based consulting actuary Jeremy Gold, who tracks public pension funds.  (Method, Gannett)

http://www.app.com/article/20111016/NJNEWS1002/310160088/Strong-outflows-take-toll-state-pension-fund?odyssey=nav|head

Credit downgrade makes for pricey Collingswood bailout

Credit downgrade makes for pricey Collingswood bailout

The borough of Collingswood is betting a renter’s market will get it out of a hole dug by the flailing LumberYard condominiums project.

Borough officials — including Mayor James Maley — lobbied Moody’s analysts Sept. 30 in Collingswood to revisit the six-notch super-downgrade the borough received Sept. 12. Moody’s is the only ratings agency that monitors the borough’s finances. The downgrade to junk made more expensive the town’s plan to purchase 14 empty condominiums and put them on the market for rent.

Information exchanged in such meetings with analysts is confidential and Moody’s would not comment. Maley would only describe last month’s conversations as “productive.”  (Roh, Gannett)

http://www.app.com/article/BZ/20111010/NEWS01/310100017/Credit-downgrade-makes-pricey-Collingswood-bailout

Steve Lonegan plays to a packed house in Wyckoff for his "Courts Gone Wild" tour

Steve Lonegan plays to a packed house in Wyckoff  for his "Courts Gone Wild" tour 
the Staff of the Ridgewood blog

(WYCKOFF- NJ) Tuesday, night at the Larkin House in front of an overflow crowd Steve Lonegen outlined his ambitious new initiative  to curtail New Jersey supreme Court over reach . Lonegan extolled the crowd with details of how New jersey's supreme court has run rough shot over taxpayers forcing the state to take on massive governmental programs putting the state in a huge financial hole.

Lonegan detailed how the court has ruled over and over that the State could fund its massive spending binge on projects such as school construction is the same court that unconstitutionally ordered the state to build these schools.  School construction bonds were paid off through appropriations-backed debt without voter approval in violation of the Constitution.

Courts Gone Wild is a new project of Americans for Prosperity AFP, a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. AFP educates and engages citizens to support restraining state and federal government growth and returning government to its constitutional limits. AFP is more than 1.8 million activists strong, with activists in all 50 states. AFP has 32 state chapters and affiliates.

The "Courts Gone Wild " tour is making its way through the garden state . Lonegan is looking to pick up support for a grass roots movement looking to pressure the NJ Supreme Court to rediscover its roots and once again respect the state constitution ,restoring the balance between the executive , legislative and executive branches of state government.

Fitch Downgrade Highlights Destructive Role of NJ’s Activist State Supreme Court

Fitch Downgrade Highlights Destructive Role of NJ’s Activist State Supreme Court
AFP

As you know all too well, New Jersey has one of the worst tax climates in the entire country and a swelling debt of more than $45 BILLION. Our state’s dire fiscal condition was made all the more evident when credit rating agency Fitch, Inc. announced last week that it was downgrading New Jersey’s general obligation bonds to AA- from AA.

Notably, Fitch cast blame for this downgrade in part on our activist state Supreme Court, specifically citing the recent ruling which dictates that the state provide yet another $500 MILLION to the 31 failing former Abbott Districts.

Citing debt and benefits, Fitch lowers bond rating for New Jersey

Citing debt and benefits, Fitch lowers bond rating for New Jersey

Despite its efforts to cut spending, New Jersey is a riskier investment, one of the leading ratings agencies said on Wednesday as it lowered the state’s credit rating, citing heavy debt and benefits obligations.

Fitch Ratings lowered its assessment of New Jersey’s general obligation bonds one notch, to AA– from AA. Fitch’s ratings for Kentucky and Michigan are also AA–; only California and Illinois have worse ratings.

In June, Gov. Chris Christie and the Legislature agreed on health care and pension changes for public workers that will save New Jersey billions of dollars. That deal added to other large budget cuts Mr. Christie had passed since taking office in January 2010, as well as savings he hopes to get in continuing contract talks with public-employee unions.  (Pérez-Peña, The New York Times)

http://www.nytimes.com/2011/08/18/nyregion/fitch-lowers-new-jersey-credit-rating-to-aa-from-aa.html

Failing Upwards : Jon Corzine rumored as possible replacement for Treasury Secretary Timothy Geithner

Failing Upwards : Jon Corzine rumored as possible replacement for Treasury Secretary Timothy Geithner

As speculation about how long Timothy Geithner will remain as U.S. Treasury secretary simmered today, former Gov. Jon Corzine’s name began to bubble up as a possible replacement.

Corzine, considered for the nation’s top financial office after Obama was elected, has emerged on speculative short lists as someone who could take over if Geithner exited before the president’s first term expires.

Several sources close to Corzine while he was still in public office said today the former governor has always had an interest in holding the job.  (Gibson and Rizzo, The Star-Ledger)

http://www.nj.com/news/index.ssf/2011/08/speculation_of_us_treasury_sec.html

Big shifts lie ahead for N.J. Medicaid

Big shifts lie ahead for N.J. Medicaid
Sunday, July 17, 2011    Last updated: Sunday July 17, 2011, 9:52 AM
BY LINDY WASHBURN
STAFF WRITER
The Record

Elderly and disabled Medicaid patients and the people who care for them are facing some of the biggest changes in the history of the government insurance program as a result of the new state budget.

Nearly all must choose a Medicaid HMO quickly, a shift in the way their health care has been managed that is causing uncertainty and anxiety.
http://www.northjersey.com/news/125703858_Big_shifts_lie_ahead_for_N_J__Medicaid.html

Local governments face loss of N.J. aid if they fail to show improvements to Christie administration

Local governments face loss of N.J. aid if they fail to show improvements to Christie administration

The Christie administration is sending the governments of New Jersey’s 566 cities and towns and 21 counties to summer school and failure to follow instructions will cost them state aid.

The administration on Thursday issued a 2011 Best Practices Checklist to each local government as part of an effort to make them operate more efficiently, strengthen their accountability, and better manage their finances. This is the second year of the initiative.  (Hester, New Jersey Newsroom)

http://www.newjerseynewsroom.com/state/local-governments-face-loss-of-nj-aid-if-they-fail-to-show-improvements-to-christie-administration

Senate fails to override vetoes

Senate fails to override vetoes

Senate Democrats failed to muster the three Republican votes needed to override even one of Gov. Chris Christie's budget vetoes to restore funding for child abuse services, women's health clinics, legal aid and mental health services.

All but one of Monday's budget restoration votes failed 24-15 strictly along party lines.  (Delli Santi, The Associated Press)

http://www.courierpostonline.com/article/20110712/NEWS01/107120329/Senate-fails-override-vetoes

Higher taxes yield to budget cuts in states

Higher taxes yield to budget cuts in states

Forty-six states began a new fiscal year Friday after lawmakers spent the spring hashing out budgets that largely avoid big tax increases in favor of budget cuts and curbs on pay and benefits for public employees.

While budget woes continued to dominate statehouses, issues such as abortion, immigration and voter identification also drove legislative action. And lawmakers continued to wrestle with soaring state obligations to help fund Medicaid, which pays for health care for low-income Americans. (Eaton and Maher, The Wall Street Journal)

http://online.wsj.com/article/SB10001424052702303982504576427880768603822.html?KEYWORDS=jersey

Sweeney rant fails to sway old allies

Sweeney rant fails to sway old allies

Senate President Stephen M. Sweeney's angry rant about Gov. Chris Christie's budget cuts earned him plenty of ink this week.

But Trenton's top Democrat appears to have protested too much, critics in Sweeney's own party said. (Roh, Gannett)

http://www.courierpostonline.com/article/20110707/NEWS02/107070328/Sweeney-rant-fails-sway-old-allies?odyssey=tab|topnews|text|State

State government’s bad financial situation makes New Jersey the 20th worst state to do business in

State government’s bad financial situation makes New Jersey the 20^th worst state to do business in

The state government’s financial struggles have caused New Jersey to take the greatest tumble among the 50 states as one of the worst states to do business, according to a study by the Center for Budget and Policy Priorities.

New Jersey fell eight spots in the 2011 review to 30th place overall. (Hester, New Jersey Newsroom)

http://www.newjerseynewsroom.com/state/state-governments-bad-financial-situation-makes-new-jersey-the-20th-worst-state-to-do-business-in

Christie signs Democratic bill that reduces tax that finances state disability benefits fund

Christie signs Democratic bill that reduces tax that finances state disability benefits fund

Gov. Chris Christie has signed legislation that provides for reductions in worker taxes paid into the state disability benefits fund, lowering the amount of payroll taxes deducted from many New Jerseyans’ paychecks.

The bill, S-2609/A-3792 was sponsored by Senators Shirley Turner (D-Mercer) and Fred Madden (D-Camden) and Assemblyman Matthew Milan (D-Cape May). (Hester, New Jersey Newsroom)

http://www.newjerseynewsroom.com/state/christie-signs-democratic-bill-that-reduces-tax-that-finances-state-disability-benefits-fund

Governor on Dems’ budget: ‘unrepentant addiction to spending’

Governor on Dems’ budget: ‘unrepentant addiction to spending’

Gov. Chris Christie released a statement on the broad outline of the Democrats’ budget proposal release by state Sen. President Steve Sweeney yesterday. (Carroll, PolitickerNJ)

http://www.politickernj.com/48955/christie-dems-budget-unrepentant-addiction-spending