Assembly Democrats Introduce New Budget With More Spending, Higher Taxes
New Jersey Assembly Democrats have crafted a new $31.3 bllion state budget that would increase spending by more than 10.7 % or by $3.035 billion. Tax increases would exceed those requested in Governor Jon Corzine’s original budget, which called for $2.6 billion in new spending, a 9.2 percent increase over last year.
Assembly Budget Committee Chairman Louis Greenwald (D-Camden) explained the Assembly budget plan would pay for the spending by extending the sales tax to previously untaxed items, increasing casino taxes and creating a new corporate income tax. Further, the plan would reduce Corzine’s proposed pension fund contribution by $175 million.
The Democrats’ plan would also restore all but $3 million in Corzine’s proposed cuts to higher education, adds $24 million in extraordinary aid to municipalities, eliminates the proposal for rural towns to pay $24 million for State Police patrols and eliminates the proposed 10% increase in property tax rebates.