Sussex County residents may feel state's ‘painful choices'

SPARTA - Gov. Jon Corzine said he had to make “painful choices.” As a result, Sussex County residents may feel a little added heat at the tanning salon or that next tattoo could pinch a bit more if New Jersey lawmakers approve the governor’s first state budget proposal. Corzine proposed raising the sales tax by a penny for services like landscaping, limousines, tanning salons and even tattoos under a record $30.9 billion budget, a 9.2-percent increase over the current year. “I’m very disappointed; it’s the same old story,” said Sparta Mayor Ailish Hambel. “Because of the fact that he’s (Corzine) a successful businessman, I thought he would get creative and not raise taxes.” Facing a multi-billion dollar budget gap, the former Wall Street whiz delivered a sobering budget plan this week that would increase sales, alcohol and cigarette taxes and break his campaign promise to sharply cut residential property taxes, the highest in the nation. “Budgets are the numbers, words and choices that capture our values,” said Corzine, a Democrat, on Tuesday before the New Jersey Legislature gathered at the State House. “My proposal will be about the hard choices and the numbers that will put our state on a pathway to financial stability.” The governor hopes to generate close to $1.8 billion in revenue by raising the state sales tax to seven cents on the dollar. An average New Jersey family of four would pay about $260 more a year in sales tax. Clothing and food are exempt. “This budget does nothing to solve the structural deficit,” said Sen. Robert Littell, R-Sussex. “It is incredibly disappointing that this is the best solution the brightest minds on Wall Street can dream up; more taxes, more debt and less property tax relief.” The governor said he would abandon his campaign promise to restore property tax rebates and the state’s annual pension obligation. Corzine hoped to increase current rebates to homeowners by 10 percent. “I don’t know how much more New Jersey taxpayers can take,” said Hambel, whose administration will receive the anticipated flat-rate in municipal aid from Trenton. “Everything is on the shoulders of the homeowners. People are getting driven out of New Jersey.” Corzine hopes to cut more than $2 billion in spending including $169 million from the state’s colleges and universities, the trimming of 1,000 jobs from the Garden State’s workforce of 54,000, and paring back or eliminating of grants for arts institutions, museums and certain public health programs to close an estimated $4.3 billion budget gap. Taxes on cigarettes would rise 35 cents to $2.75 a pack, and levies also would increase on wine, beer, and liquor. Other planned increases included a new levy on water use. Analysts report that New Jersey has been among the slowest to recover from the budget problems that have beset states across the country in recent years. New Jersey’s troubles have included rising costs for pension and health care benefits. “The governor emphasized it is time to stop spending more than we’re taking in,” said Howard Burrell, chairman of the Sussex County Democratic Party. “The governor is actually trying to keep his commitment to balancing the budget without using gimmicks.” Corzine said that much of the 10-percent increase in the 2006-2007 budget was driven by “already legislated, mandated, negotiated and inflated costs” related to pensions, education and other expenses. As a result, Corzine said he had to curb costs in areas where the state had more discretion, like higher education, health care and aid to municipalities. Byram Mayor Eskil “Skip” Danielson said the township has grown accustomed to picking up the tab for state-mandated programs ranging from stormwater studies to new equipment for detecting levels of alcohol on the breath of motorists. He said residents eventually pick up the costs. “It has an effect on everyone,” said Danielson. “It’s such a constrained budget, but it went up by $4 billion? I’d have to look at that a little more closely.” Corzine’s proposal also freezes state aid to schools for the seventh consecutive year, despite annual increases in salaries, health and insurance costs, and facility management. While the flat-aid from Trenton creates a hardship for school administrators, it is unclear how the governor’s plan will sit with local residents, who will be asked to approve school budgets in June. “A lot of districts are going to cut staff or bodies,” said Ronald Wolfe, Sparta assistant schools superintendent for business. “Because of the position we’re in, the good news for us is we will be able to maintain the current staff and programs at a minimal tax increase of $100. That bodes well for us.” But Sparta education officials are collectively keeping their fingers crossed until taxpayers vote whether or not to approve a $71.5 million reconstruction of the existing high school and a $2.5 million resurfacing of the athletic fields in a September referendum. “We put what we think is the best proposal available,” said Sparta Schools Superintendent Thomas Morton. “Everyone is going to have issues in their own personal lives. People are going to decide what they want to support or what they don’t want to support.” Nobody, including the governor, is expecting the process of negotiating the budget to be either easy or pleasant. There will be plenty of haggling between now and the budget deadline on July 1.