On Tuesday, Gov. Chris Christie laid out his spending plan for fiscal year 2014. One prominent Democrat, gubernatorial candidate Barbara Buono, told NJ Today Mike Schneider that what shocked her most about the speech was what the governor did not say. Asm. Gary Schaer (D), Vice Chair of the Assembly Budget Committee echoed the sentiment about what the budget address lacked.
According to Schaer, the governor’s 2014 budget assumes a 4.9 percent economic growth which, he says, is certainly more realistic than the 8 percent growth proposed last year.
“What we did not hear were areas such as women’s health which was taken out of the budget last year — $7.2 million. We didn’t see a number of areas that we would have like to have seen.”
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Hurricane Sandy-related costs should have little effect on the budget, he said, because most of that bill is being footed by the federal government in the form of the $60 billion in federal relief aid between New York and New Jersey.
The state’s coffers are not bottomless and priorities must be set, said Schaer. The driving question behind any budget, he said, should be “how one defines what the needs of New Jersey are that can best be fulfilled by the state.”
The governor said his budget includes a $1.676 billion payment by the state pension system, calling it the largest pension contribution ever made by the state.
Schaer said that while his statement is factually accurate, that amount is only three-sevenths of what is actuarially required.
In addressing the state’s budget problem, Schaer gives the governor a mixed report.
“Four years ago, when Gov. Christie ran for governor, he spoke about a structural deficit. That structural deficit composed of three main items: pension debt, health care debt of the state’s obligation to retirees and transportation trust fund. And that debt still remains at the same, if not, greater levels four years ago when he ran,” Schaer said.
“Have we meaningfully solved the budget problem? I would argue no we have not,” he said. But Schaer gives the governor credit for progressive steps made.
“As a Democrat, there are many things I don’t agree with the governor about, but certainly, he’s been very helpful in meeting some of those needs and expectations long term,” said Schaer.
However, Schaer took note that the governor’s $9 billion budget does not include vital health and education programs.
“That $9 billion does not anticipate, does not look forward to more nursery programs throughout the state where they’re necessary, not only in urban areas but in suburban areas as well,” said Schaer. “Hospital care, healthcare costs are not being appropriately and adequately addressed. Does that mean the answer must be new taxes, new taxes, new taxes?” Responding to his own question, he said he hopes not as his taxes are already high enough. “I can’t afford more,” he said.
Schaer found it interesting that Christie made a point of saying that the Corzine administration added 115 new taxes and fees.
“What he failed to mention was, God bless him and his administration, they spent every dollar of that revenue. So it’s not as if he gave it back and said I don’t want it,” said Schaer.
In his budget address, Gov. Christie announced an expansion of Medicaid in compliance with the Affordable Care Act. It’s a move that Schaer applauds, calling it a tremendous step for the New Jersey.
“It was in keeping with our historic concerns to provide people with health care in recognition, by the way, that that will ultimately save money from monies that would otherwise go to hospitals and clinics and the rest of it,” he said. “I know that it doesn’t make [Gov. Christie] the most popular guy in the Republican party, but it certainly reaffirms his status and his stature in New Jersey as stepping back from the political and doing the right thing, not all the time, but at least on this issue.”