By Michael Aron
Chief Political Correspondent
The Treasurer had it pretty easy today in his first defense of the Christie Administration budget plan for next year. Democrats on the Assembly Budget Committee asked hard questions, but the tone was civil.
First, lawmakers learned there will be no fight over revenue estimates this budget season. The Office of Legislative Services and the Governor expect nearly identical revenue growth of 3.8 percent—the closest they’ve been to each other’s estimate in 21 years.
“They make their revenue forecast. It turned out it was one that was very close to ours,” said David Rosen, Budget and Finance Officer for the Office of Legislative Services. When asked if that is that a good thing he said, “I think it’s good if we don’t waste time arguing about who’s right.”
It’s a hold the line budget that keeps school aid and municipal aid flat. Pensions eat up 62 percent of what growth there is. Committee chairman Gary Schaer asked about taking on new debt.
“So the anticipation is that you’ll be borrowing in 2016 an additional 2.6 billion,” Schaer asked. “Right, which is a little bit less than we borrowed in the past,” said State Treasurer Andrew Sidamon-Eristoff.
Sidamon-Eristoff insisted the state’s credit is good.
“We have enjoyed extremely strong market reception when we’ve gone into the markets. I think we’ve done better than our ratings would suggest,” said Sidamon-Eristoff.
Committee vice-chair John Burzichelli asked about the Transportation Trust Fund. Last week Governor Christie used the number $1.6 billion.
“We are currently spending $1.6 billion a year on infrastructure, matched by $1.6 billion a year in federal money. That’s $3.2 billion a year that we’re spending on roads, and bridges and mass transit every year. We’re not bankrupt — it’s funded through 2016,” Christie said at last week’s town hall.
Eristoff used a smaller number — 1.1. billion — but made the same point.
“There is no proverbial sword of Damocles hanging over the state’s transportation program as of July 1, 2015,” Sidamon-Eristoff said.
“This year you’re telling us the world is not ending. I don’t disagree with that, I don’t think the world is ending, but it looks like this money is pieced together in a way that is different than what the governor spoke about when he presented his plan to the state on Jan. 6, 2011,” said Vice Chair Assemblyman John Burzichelli.
Democrat Gordon Johnson asked about the large fees generated for investment houses that handle the state’s pension money.
“Could you explain why that number is so high, $600 million for fees,” Johnson asked.
Eristoff said the press has completely distorted that issue.
“Quite to my mind, this impugns the reputation of our professional staff and of those good people who agree to serve on the state investment council for no compensation whatsoever and I think that everyone needs to know — the public especially — needs to know that we are in very, very good hands and that we run a very tight ship and we should be proud of that,” said Sidamon-Eristoff.
Democrat Troy Singleton asked about Judge Mary Jacobson’s order that the state put another $1.6 billion into the pension system for this year alone.
“At this point has the administration developed a contingency plan to address the $1.6 billion judgement that we know has already been adjudicated, is there a contingency plan in place currently,” asked Singleton.
Eristoff said no, because the state is appealing the ruling and there is no money available.
“I think you’ll appreciate how difficult it would be to try and identify $1.6 billion of resources in the remaining months of the current fiscal year,” said Sidamon-Eristoff.
Tomorrow the Treasurer and Office of Legislative Services go before the Senate budget committee with the same presentations, but with different questions.