Wednesday, July 05, 2006

State Budget - Corzine Firm!

Governor Corzine addressed a joint session of the legislature this morning regarding the state’s failure to develop a budget for FY’07. The Governor used his constitutional authority to order the legislators to Trenton for an unprecedented 4th of July session to break the budget logjam. While the Governor can order the legislature to meet, he can not force them to take action. His Executive Order # 18 requires the legislature to come to Trenton every day until a budget is struck.

Almost 50 NJEA members and staff were in the gallery to hear Governor Corzine deliver a serious and sober message in which he offered support for a compromise proposal originally initiated by Senate President Codey. The proposal would devote half of the revenue derived from a new sales tax increase to property tax relief and devote the other half to address the state’s budget shortfall.

After the speech both houses and both parties caucused. The Senate left after an hour while the Assembly caucus continued for four hours.

At 4:45 pm Speaker Roberts held a press conference and declared the sales tax “dead in the Assembly.” He said that the Assembly Budget Committee members would be working all night and urged Governor Corzine to consider alternative cuts and revenue sources. NJEA was pleased to hear Speaker Roberts indicate that there was not support in his caucus for a proposal to extend the Temporary Disability Insurance (TDI) tax. The TDI proposal would have negatively impacted our members by imposing a payroll tax that they currently do not pay.

As of this writing we believe that all parties to this debate continue to support the significant pension contribution for which we have been lobbying.

NJEA expects both houses to meet on a continuing basis. However, due to continuing uncertainty regarding the activities of the legislature, we are not asking members or staff to come to Trenton on Wednesday, July 5th. NJEA is working with other labor, environmental, consumer and civil rights groups on a Fairness Alliance press conference for Thursday, July 6th. Consequently, we may be asking members and staff to come to Trenton on that day. Please stand by for more information regarding a potential lobby day on Thursday, July 6th.

Members should continue to contact their legislators and urge them to end this crisis and provide New Jerseyans with a responsible state budget now.

When you contact our members please express our appreciation to those who spent part of their 4th of July holiday in Trenton with us as well as to those who took the time to contact their lawmakers during this continuing crisis. Their efforts are making a difference.

NJEA staff are in the State House monitoring events on an hourly basis.