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Nobody comes out a winner after budget impasse
 Message was posted: 08:05 Jul 12th, 2006     
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Last Thursday, there were no winners in New Jersey's casinos, no winners at Monmouth Park or Freehold Raceway. Nor were there any big winners at the state capitol when the budget impasse came to a merciful end.
At first glance, Gov. Corzine appears a winner. But will he quickly become the focus of voter wrath, a la former Gov. James J. Florio, as our increased sales and nuisance taxes hit our pocketbooks? Only time will tell.

In his roles as party leader and governor, Corzine's alleged "victory" was at best a qualified one. The squabbling Democrats are more than ever divided into North Jersey and South Jersey wings, or Corzine vs. Camden County Democratic power broker George E. Norcross III.

Over half the sales tax increase was given back to the Legislature for disposition. It is the Legislature that will determine what that catchy but vague phrase "property tax relief" really means. Just more handouts to urban municipal and school districts?

And Democratic legislators are celebrating Christmas in July, having earmarked substantial amounts of new tax revenue for their pet projects. (Did Corzine veto too many of South Jersey's goodies, thus intensifying the Democrats' intra-party feud?)

But enough about "winners," real or imagined. The losers are legion. First and foremost are we taxpayers. The sales tax will continue to nibble us to death, and turn more of us to online and out-of-state purchases. The plethora of new nuisance taxes will increase the cost of everything from health care to health clubs.

Once more, we have been promised property tax "relief" instead of reform. The proposed constitutional amendment, dedicating future revenue to property tax relief, is little consolation. The constitutional dedication of state income tax revenue was supposed to curb property tax increases, and we all know how that worked out. Unfortunately, "relief" is a broad conceptual highway.

There has been no significant attack on our structural problems, especially the nature and responsibilities of counties, municipalities and school districts. The devil's brigade of independent authorities and agencies, which tax, borrow and spend willy-nilly, emerged unscathed.

Nor have any inroads been made into our philosophical problems: the lack of dedication to the public good by our elected and appointed public officials; the "gimme, gimme" attitudes of New Jersey's special interests; pay-to-play and other contributors to the moral vacuum that pervades all levels of government.

Years ago, the noted writer Walter Lippmann argued that every political society needs a "public philosophy." New Jersey is still searching for one.

After last week's debacle, there have been calls for reform of the budget process. And certainly, it needs attention. Why, for example, does the Legislature continue to take a "spring recess" in the face of our financial woes? And there are many facets of our bureaucratic processes that cry out for overhaul. Ask any business. Indeed, New Jersey business was another big loser last week. Just think of the headaches ahead as they adjust to increases in the sales and nuisance taxes they must collect or pay.

Another big loser is the Republican Party. It had months to develop an alternative to the Corzine budget and failed to do so. Where is the party's state leadership? Who is its spokesperson? Where does it want the state to go?

Standing on the sidelines and watching the Democrats bicker and squabble hardly encourages voters to see the GOP as New Jersey's savior. Do the Republicans really have the capacity to govern the state?

Trying to give things a positive spin, Corzine declared that the budget compromise was just his first step. He and the Legislature will go back to work in a few weeks, ostensibly to tackle basic property tax reform. Will they have the guts to take giant steps forward, or will last week turn out to be just a misstep?





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