Gov. Completes Budget for 2003

Reinforcing his commitment to a State budget that is fiscally responsible, Governor James E. McGreevey welcomed Tuesday's “adoption of legislation to restructure the State’s corporate business tax.”

“This legislation will necessarily ensure that major corporations pay their fair and equitable share of taxes to our State,” explained McGreevey.

“As of today, there is tax equity. For too long, certain major corporations were only paying $200 per year – less than middle-class New Jersey families. Middle-class families in the past 20 years have paid more in income taxes and sales taxes while, in actual dollars, businesses have been paying less. That is unacceptable.”

“Today, there was only one objective: to fix the Corporate Business Tax, to close woeful loopholes, and ensure a balanced, fair, and equitable business tax. Today, we have accomplished that end.”

“I want to express my gratitude to Senate Co-Presidents Codey and Bennett for returning to Trenton and securing adoption of the corporate business tax legislation,” McGreevey said.

Although faced with a $6 billion budget deficit, the Governor was also able to fulfill his commitment not to balance the budget on the backs of New Jersey’s hard working families and his promise not to raise income or sales taxes.

“We are fulfilling our moral and constitutional obligation to enact a balanced budget that is fiscally responsible,” McGreevey said. “This budget will put the state back on sound financial footing.”

The $23.4 billion spending plan is based on core principles: providing New Jersey’s children with a top quality education; investing in economic development and infrastructure to position New Jersey for the future; and ending the days of reckless spending and borrowing by adopting a budget that is fiscally responsible and shrinks the size of government.

The adopted budget represents a less than one percent increase over the adjusted FY 2002 budget. Essential spending increases include increased funding for Homestead Rebates, homeland security initiatives, the program that freezes senior property taxes, staffing at state institutions that were threatened with a loss of federal funds, court-mandated education funding and contractually required employee expenses.

In order to afford increased costs in these areas, significant cuts were made to state operations. There are reductions in the budget of nearly every state department, and the budget provides for a state workforce that will be approximately 1,000 employees smaller.

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Author: Paul Aronsohn