TRENTON -- Gov. James E. McGreevey yesterday
outlined his plan to plug a $2.9 billion budget
hole with a combination of program cuts, fund
diversions and surplus spending. In his first
public policy speech since taking office Jan.
15, the Democrat froze $435 million in spending
and tapped over $500 million in unused fund
balances. He already outlined over $1 billion
in savings, through 5 percent spending cuts
in all departments and more than $400 million
in reductions made by his predecessor, acting
Republican Gov. Donald DiFrancesco.
McGreevey did not call for any tax increases
or additional job cuts, but he re-emphasized
the need for a leaner, more efficient government.Since
McGreevey took office, close to 1,000 workers
have been fired, laid off, asked to resign
or moved to other positions.
McGreevey warned that the fiscal struggle
is just beginning, because a $6 billion shortfall
is projected for the next fiscal year, which
begins July 1. McGreevey plans to outline
his budget for the upcoming year covering
July 2002 to June 2003 on March 26.
Some of the heftiest program cuts target
the budget for the state Department of Human
Services. McGreevey cut about $24 million,
for example, from a program that places disabled
adults in community homes. He also cut a proposed
$17.5 million increase in Medicaid reimbursements
to physicians that was to take effect on Jan.
1 but was never enacted.
Plans to build a new hospital at Greystone
Park Psychiatric Hospital in Parsippany and
to move some patients into an improved community
health network in New Jersey were set back
by a $10 million cut in a $17 million "bridge
fund" approved last year to create new community
mental health beds and hire more social workers.
These cuts had first been put into affect
by then Acting Governor DiFrancesco in December
(see the NAMI NEW JERSEY Advocacy Network
Alert of December 4, 2001).
Other proposals include:
[] $25 million reduction in Medicaid rate
increases for physicians and hospitals:
[] $10.3 million reduction in farm preservation
funding:
[] $10.2 million reduction in funding for
state park improvements:
[] the elimination of $750,000 in increased
charity care funding for Atlantic City Medical
Center:
[] $5 million reduction in prisoner perimeter
security funding:
[] shifting $30 million in unused funds from
the Senior Gold prescription drug plan:
[] 10.5 million cut from anti-smoking campaigns
and programs:
[] $7.4 million cut from subsidies for race
tracks and race horse breeders:
[] $7 million cut from "development credit"
program to subsidize Pinelands preservation:
[] $5.6 million cut from New Jersey Transit:
[] $5 million cut from Tuition Assistance
Grants:
[] $4.6 million cut from State Police, including
$3.3 million for helicopters. Monday's proposals
were combined with cuts and freezes made by
acting Gov. Donald T. DiFrancesco and the
5 percent across-the-board cuts to state government
departments and colleges and universities
McGreevey already proposed.
This update has relied on reports from The
Courier Post, Star Ledger, Home News Tribune,
and The Atlantic City Press.
