Clock Ticks Toward
State Budget Deadline

As the July 1 deadline approaches for finalizing New Jersey’s fiscal 2007-2008 budget, debate continues to focus on what approach the state should take in providing adequate revenue for programs, including school aid, at the levels recommended by Gov. Jon S. Corzine.

At press time, news reports indicated that the Administration and Legislature might be heading for a show-down over the governor’s proposed one-cent sales tax increase. The Star-Ledger reported on Tuesday that Corzine ordered his cabinet to prepare for a government shutdown if agreement could not be reached on a new budget before July 1, the start of the new state fiscal year.

While a vote in either house has not been taken regarding the tax increase, or expanding the sales tax to professional services, the Assembly majority has made it clear where it stands.

In an announcement Monday, Assembly leaders said the governor’s proposed sales tax increase would be “unachievable” because of extensive opposition by elected officials.

“The overwhelming expression of sentiment was for leadership to devise a credible list of alternatives to achieve a balanced budget that is respectful of the governor’s agenda and pension fund contribution efforts while avoiding a sales tax increase,” the Assembly Democrats said in a prepared statement.