Christie Calls for a 'New Normal' in State Government

Gov. Chris Christie vowed on Tuesday afternoon to continue with what he coined as the “new normal” in New Jersey and keep the state on a path of fiscal discipline and reform in an address outlining the 2012 budget.

Christie said his budget reduces government spending 2.6 percent from last year’s $30.2 billion budget and “marks a departure from the Trenton tradition of budgeting to meet deficit projections that embrace wish-list spending by legislators and assume continuous funding increases that irresponsibly ignore actual revenue sources.”

Instead, his budget takes a “bottom to top” approach, and establishes priorities and will fund them based on revenue that is actually available, he said.

The spending plan includes $200 million in proposed tax cuts, including property tax relief, and will increase aid to schools by $250 million while keeping municipal aid levels flat.

The governor proposed a total state budget of $29.4 billion, which reduced spending 2.6 percent from last year, and called for pension and benefits reform, as well as education reform.

Christie laid out a plan to reduce wasteful spending in each reform category and told the state that it would “require tough choices,” to make a difference in each of these areas.

“This is a new paradigm for state government – a new normal – that cuts and spends responsibly, (encourages) our local governments to do better with what our taxpayers entrust to them, and causes businesses to feel welcome and want to stay and expand or relocate to our state,” he said.

In addition, the governor laid out his vision for the state and its residents to emerge from the recession by attracting new businesses  with tax cuts, reform and incentives to encourage job growth, with a proposed phased-in program of $2.5 billion in job-creation incentives over the next five years.

Christie said that the budget seeks to “protect those residents who are most vulnerable,” and preserve prescription aid for senior citizens and the disabled, as well as keeping 4,300 low-income citizens in their homes and apartments.

The budget speech was criticized by Democrats, including Assembly Speaker Sheila Y. Oliver (D-Essex).

She said in a statement on Tuesday afternoon that although the General Assembly stands ready to again control spending, “we must consider the impacts on working class New Jerseyans, senior citizens, children and those less fortunate.”

“We will begin our constitutional obligation to review this budget, but property tax relief, health care access and job creation must be our priorities,” she added.

However, state Sen. Sean Kean, R-11, lauded Christie's emphasis on fiscal discipline.

“We have stabilized the state’s fiscal affairs enough to allow us to increase funding for core priorities, including education and property tax relief, even as we continue to maintain fiscal discipline and reduce overall state spending from year to year," Kean said.

"The plan to increase school aid, combined with the 2-percent property tax cap we enacted last year, will help bring property tax bills under control. This is all proof that fiscal discipline is the best form of tax relief.” 

The 2012 budget plan includes cuts which would force many state departments to operate with less money than last year.

The Department of Health and Senior Services stands to see a decrease of nearly 15 percent. The Department of Environmental Protection will also see a decrease of nearly 10 percent.

To increase hospital funding by a projected $20 million from last year’s budget, the governor seeks to reform Medicaid by moving the state’s aged, blind and disabled recipients into modern managed care as well as moving their pharmacy benefit to modern managed care as well — a move, he estimated, that would save the state $41 million.

Christie proposed doubling the state research and development tax credit to encourage high technology and biotechnology entrepreneurs to create and discover within the borders of the Garden State.

For pension reform, which he deemed “simple and common sense,” Christie proposed raising the retirement age and eliminating the cost of living adjustments.

Christie urged the Democratic-controlled Legislature to pass the reforms quickly, and offered a $500 million pension payment as incentive for them to act swiftly. 

Assemblyman Joe Cryan, D-20, the Democratic majority leader, said Christie's address reveals the governor to be out-of-step with New Jersey families.

“This governor’s assault on the middle class knows no bounds," Cryan said. “This governor simply takes money from everyone and provides little in return, while creating divisiveness throughout our state.

“While we’re fighting for the working class, this governor has presented a budget that will crush the middle class and poor with property tax hikes, reduce access to vital health care services and provide tax breaks to dead millionaire. The governor has once again shown that his priorities are not those of working class families," Cryan said.

New Jersey Education Association President Barbara Keshishian said the governor's address makes educators a "scapegoat."

“In this budget, the governor continues to scapegoat public education employees by pitting senior citizens and all of New Jersey against them," Keshishian said.

“He may claim there are no new taxes in his budget, but don’t tell that to New Jersey’s teachers and school employees, who would take a huge hit under his proposals."

Keshishian also argued that while the governor plans to make contributions to the pension system, it will come at the expense of school employees.

“Educators have already shown they’re willing to share in the sacrifice, but Chris Christie is singling them out to pay the entire tab for this budget," she said.

“We estimate that his proposals would cut the average teacher’s compensation by 15 percent or more. Where is the shared sacrifice?”

For the full text of Christie's speech, .