Governor’s
Budget Calls for Sacrifice
TRENTON — Gov. Chris Christie unveiled
his first state budget today, detailing how he plans to
deal with New Jersey's fiscal crisis in the most important
speech so far of his new administration. The governor has
repeatedly said the budget will be a painful one as the
state struggles to emerge from an economic recession that
has stifled tax revenue.
His $29.3 billion budget proposal will make
sharp reductions in state aid, spreading the fiscal pain
far and wide, according to officials briefed on the plan.
Cuts include $820 million in school funding, $445 million
in financial support to municipalities and $175 in aid to
colleges and universities. The state is also planning to
skip a $3 billion payment intended to shore up the struggling
pension fund for public employees.
Christie has said the cuts are necessary to
close an almost $11 billion budget gap.
The speech is the starting gun in a months-long
series of negotiations between the Republican governor and
the Democratic-controlled Legislature. The budget must be
approved by the Legislature and signed into law by the governor
by July 1.
The Governor stated that "The watchwords
of this budget are shared sacrifice and fairness. Individuals
contribute, businesses sacrifice, local governments tighten
their belts, and we end our addiction to spending. Everyone
comes to the center of the room – we jump off the cliff
together to stave off certain fiscal death for the hope
of economic salvation tomorrow". He added "There
is no question: this has been an incredibly difficult period
for our state and its people. And the choices I am asking
you to make now will not be easy."
Under the proposed budget the Department of
Human Services and the department of children and families
will both see their budgets reduced by 4%.
In a briefing earlier in the day NAMI NEW
JERSEY learned that the Governor proposes to close Hagedorn
Psychiatric Hospital by June of 2011. In addition the budget
proposes to increase the contributions that counties are
required to make to support their residents in state and
county psychiatric hospitals. Budget reductions that were
made to this years budget to offset revenue shortfalls are
expected to continue into the coming fiscal year that begins
on July 1st. Further details including contract reductions
to community agencies are expected to emerge in the coming
days.
On a positive note the proposed budget is
expected to continue funding to develop community placements
under the Olmstead settlement for those who are Conditionally
Extended Pending Placement (CEPP) in state hospitals or
at risk of institutionalization. In recognition of the prior
success of mental health advocates the proposed budget does
not call for Medicaid co-payments.
NAMI NEW JERSEY will provide additional budget
updates as information becomes available.
See the text of the Governor’s budget
address:
http://www.nj.com/politics/index.ssf/2010/03/text_of_gov_chris_christie_bud.html
See the Budget in Brief:
http://www.state.nj.us/governor/home/pdf/budget_brief.pdf
