NORTH JERSEY - Governor Jon Corzine has taken his plan to reduce and eventually eliminate the state's $33.5 billion debt on the road.
Promising 21 town hall meetings in 21 counties, Corzine made his third stop at the County College of Morris in Randolph on the evening of Jan. 16.
The four-step plan, with its most prominent step being a maximum 50-percent increase in tolls beginning in 2010 and occurring in four-year intervals until 2022, has drawn the ire of many New Jersey residents. Residents lined the aisles of the college's auditorium to voice their disapproval with this and other aspects of the governor's plan, as well as to address other unrelated concerns.
In a press conference held at the Morristown municipal complex prior to the town hall meeting, Corzine described his plan as a necessary solution.
"If you only look at one piece of it, if you just want to talk about the tolls, heck, I'd want to vote against it," Corzine said. He added that the state faces serious financial difficulties with "limited alternative solutions." He said the solution has "some costs associated with it, but it has a clear set of benefits also, and I think the benefits are such that we'll end up serving the public well."
The town hall meetings are about emphasizing these benefits. According to Brad Abelow, the governor's chief of staff, the meetings have also been useful in gauging other concerns among New Jersey residents.
"Whether it relates to this plan or other issues, this is truly an exercise in understanding what people react to, and we are prepared. We think we have an idea that is historic because of the boldness of actually trying to do something to tackle the state's underlying financial problems," Abelow said.
"This is as much an exercise in listening as it is in selling."
Corzine acknowledged that most New Jersey adults do not support his financial restructuring plan, largely because of the toll increases. He said this does not dissuade him from pursuing his plan.
"I think doing the right thing sometimes does not necessarily win you popularity," he said. "But if you do the right thing in the long run, people will come to recognize it themselves."
Later that evening, Corzine delivered a half-hour slide presentation of his plan to a packed auditorium of citizens. Overflow rooms were established so people who could not get seating could watch a live video feed of the meeting.
The crowd was polite to the governor, but some residents with questions were the targets of jeers and shouting.
Some components of the governor's plan drew applause from the crowd, particularly a constitutional amendment that would require voter approval for borrowing without dedicated sources of revenue and his plan to limit future state spending to equal growth in state revenue.
The governor also listed a set of alternatives to his plan. These included a 20-percent increase in income tax, a permanent 30-percent increase of the sales tax, a permanent 45- to 50-cent increase in the gas tax per gallon, and cutting $4.5 billion to $5.0 billion of expenses, which is roughly 13 to 15 percent of the budget.
The last alternative was interrupted by applause from the crowd.
"That's fine. So you understand that means school aid goes down and property taxes go up," Corzine said.
As Morris County area residents raised specific concerns, Joe Long of Oak Ridge asked why Homestead Rebates couldn't be applied as tax credits to cut down on funding required for mailings.
Corzine said this would be problematic because personal and financial information would need to be distributed to offices outside the tax department. He also said most residents pay their taxes through a mortgage company.
Alicia Swift of Jefferson Township asked if Corzine would support a constitutional amendment "that limits the budget increase to inflation plus population growth percentages." Corzine said he would not support such a plan.
Jay Webber, a Republican assemblyman from the 26th District, was present at the town hall meeting along with Republican State Senator Joseph Pennacchio. Webber said he appreciated Corzine's visit to Morris County, but he did not support the plan.
"Three-quarters of his plan is out of the Republican playbook," Webber said. He added that Corzine's plan "is designed to allow the state's budget to continue to grow" and that "it trades one debt issue for another."
Webber further said the assembly Republicans have identified an additional $2 billion that could be cut from the budget.
Pennacchio also thanked Corzine but said he didn't think the governor changed his mind.
"We were given the same speech when they raised the corporate tax well over $2 billion," Pennacchio said in a Jan. 17 telephone interview.
Pennacchio said that the state should create a stimulus package of tax cuts to invigorate the economy.
"The more money they take out of the taxpayer's pocket, the less he has to spend. That affects the economy overall. The only group that is spending money in the state of New Jersey is the governor."
Pennacchio added, "Why don't we take a look at cutting spending before we look at ways of taxing ourselves?"
A Passaic County town hall meeting has been scheduled for 7 p.m. on Wednesday, Feb. 6 at Passaic County Technical Institute.
Corzine's plan, briefly
Governor Jon Corzine has created a four-step plan for reducing the state's $33.5 billion debt.
The first step involves freezing overall state spending at last year's level. In his January State of the State Address, he said this would mean "finding $2 to $2.5 billion in cuts" for the 2008 budget.
Corzine proposed legislation to limit future state spending to growth in state revenue for the second step. He also said any budget surplus or non-recurring revenues will be directed toward debt reduction, capital investments, or health care or retirement obligations.
The most controversial step of Corzine's plan involves 50 percent toll increases on New Jersey toll roads beginning in 2010 and occurring in four-year intervals until 2022.
He said the increases "reflect a maximum schedule" and could be reduced if possible. The increases will also include "annual cost-of-living adjustments."
Corzine said toll increases will "pay down at least 50 percent of state debt and fund transportation improvements."
Operating rights of the toll road will be transferred to a new, nonprofit Public Benefit Corporation (PBC). The state will retain ownership of the roads and the PBC will pay the state for the right to operate them. Any operating debts incurred by the PBC will be its own, not those of the state.
Revenues generated by the PBC through collecting tolls will be redirected into the state for roadway improvements and to pay off debt.
The final step of the governor's plan is a constitutional amendment that would require the public to approve borrowing without a "dedicated source of revenue" by vote.
Corzine has promised 21 town hall meetings to discuss his financial restructuring plan. He has held three to date, the most recent at the Community College of Morris on the evening of Jan. 16.
The Monmouth University/Gannett New Jersey Poll, released on Jan. 17, found that 56 percent of New Jerseyans oppose Corzine's plans for toll increases.
Only 15 percent support them with the remaining 29 percent undecided.
