State Treasure Abelow Says New Jersey’s Budget Defies Basic Principle Of Math

Yesterday, New Jersey State Treasure Bradley Abelow testified before the Assembly Budget Committee concerning Governor Jon Corzine’s proposed budget for fiscal year 2007. Abelow’s prepared remarks may be read here.

In his testimony, Abelow repeated the governor’s lines – we must stop spending more than we take in and we must rely much more heavily on spending cuts than on new revenues to balance our books. He also claimed the proposed 2007 budget contained spending cuts and then said:

Common sense suggests overall spending should be flat, if not lower as compared to the current year’s budget. New Jersey’s budget, however, defies this basic principle of math.

Actually, New Jersey’s budget does not defy logic or basic math principles. It’s the Governor and his spokesman’s spin that attempt to alter reality in the minds of the people of New Jersey. Proposed spending in the 2007 budget is up 9.2% and state tax revenue, before Corzine’s latest round of tax increases, has experienced tremendous growth. The New Jersey Tax and Revenue Outlook Fiscal Year 2006-2007 report, released yesterday, highlights the fact the state has a spending problem and not a revenue problem.

• New Jersey’s income tax revenue is up 11.6% year-to-date for fiscal year 2006. (Fiscal year 2004 income tax revenue revenues grew by 10%, and for fiscal year 2005, income revenue grew by 29%.)
  
• New Jersey’s sales tax revenue is up 3.5 % year-to-date for fiscal year 2006. (Fiscal 2004 sales tax revenue revenues grew by 5.5% and for fiscal year 2005, sales tax revenue grew by 4.6%.)


• New Jersey’s corporation business tax (CBT) revenue year-to-date is 33.7% above last year.
  
• New Jersey’s inheritance tax revenue is up 19% year-to-date over last year.
  
• New Jersey’s realty transfer revenues are up 33.4% for fiscal year 2006.

The principles of math remain and common sense is alive and well in New Jersey. The more the state takes of our income, the more the politicians in Trenton spend. Governor Corzine has not proposed any program or spending reforms to change this situation and has opted for new and increased taxes to keep the gravy train rolling.