Governor Attempts to Close Deficit...

Speaking before an emergency joint session of the legislature, Governor James E. McGreevey today outlined his plan to balance this year's budget.

Through a combination of freezes, spending cuts, and other measures, the Governor's plan closes a $2.9 billion shortfall in the FY2002 budget. "We are going to do what it takes to balance our budget," McGreevey said, "and we're going to do it right-tough and fair."

During the speech, which took place in the State Assembly Chambers, McGreevey highlighted the unprecedented magnitude of the state's budget crisis. "No one in this room and no citizen in this state should underestimate what we're facing," he explained. "The decisions ahead are going to be very hard."

McGreevey expressed his determination to confront this "serious and imminent threat," noting that it was created by previous administrations, which allowed New Jersey's budget to grow at a dangerous pace-from $14.8 billion just before Governor Whitman took office-to $23 billion this year.

"The irony is that those who led the state-so-called 'fiscal conservatives'-increased spending more than any governor in history, created the biggest state workforce in New Jersey history, and left us with the biggest deficit in New Jersey history."

McGreevey noted, "Sooner or later the time comes when an accounting has to be done, the truth has to be uncovered, and the tough decisions have to be made. That time is now."

McGreevey's deficit elimination plan includes the following measures:

-- Use of $325 million from the Unemployment Insurance Fund -- Use of $100 million currently designated for school construction -- $72 million reduction in state aid for colleges and universities -- $25 million reduction in shore protection funding -- $25 million reduction in medicaid rate increases for physicians and hospitals-- $16 million reduction in dam repair funding -- $10.5 million reduction in anti-tobacco program funding -- $10.3 million reduction for farm preservation funding -- $10.2 million reduction in funding for state park improvements -- $8.2 million reduction in aid to non-public schools -- $5 million reduction in prison perimeter security funding -- $3 million reduction in funding for the Apprenticeship program -- $2 million for historical grants -- $1.5 million reduction in funding for Womens Micro Business programs

McGreevey called on the legislators-Republican and Democrat alike-to work with him to solve the budget crisis. While acknowledging that many of the measures would be painful, he challenged the legislature to work with him. "I am offering solutions today to a problem that I did not create and a budget I did not propose. So, if there's a proposal you cannot support, then come up with something of equal value to replace it."

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Author: Paul Aronsohn