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Governor Christie Signs Seventh Balanced Budget with No Tax Increases

By Press Release

TRENTON — Governor Chris Christie on June 30 signed into law his seventh balanced budget that provides stability for the New Jersey economy and meets the State’s fiscal obligations. The Governor’s Fiscal Year 2017 State Budget is also his seventh consecutive with no new taxes or tax increases and includes $2.3 billion less in discretionary spending than the fiscal year 2008 budget. This $34.5 billion budget continues for a sixth consecutive year the highest amount of aid for public schools and includes the largest pension payment in New Jersey history.
“Once again, for Fiscal Year 2017, the legislative majority has presented me with an irresponsible spending plan. Their unrealistic budget makes no hard choices, relying instead on gimmicks and assumptions to fund hundreds of millions of dollars in new spending while confirming beyond all doubt that they are untrustworthy stewards of the State’s finances,” said Governor Christie. “It anticipates $129 million more in additional State revenue collections than my revised May budget recommendations and $301 million more than the May revenue projections prepared by their own Office of Legislative Services. Because the Legislature’s proposal is unsound, I must again object.”
The budget recommendations submitted by Governor Christie to the Legislature in February, and updated in May, included a surplus as well as a modest assumption for health benefit reforms that called for $250 million in savings to offset anticipated growth. This represents a small down payment on the $2 billion in reforms recommended by the bipartisan New Jersey Pension and Health Benefit Study Commission. However, the Fiscal Year 2017 budget passed by the Legislature fails either to budget responsibly for the projected health benefits growth or to provide any assurance of actual, substantive reforms.
“In contrast to the legislative majority’s fiscal irresponsibility, my budget framework provides stability for New Jersey’s economy. It accommodates reasonable spending, while responsibly meeting the State’s fiscal obligations. The Fiscal Year 2017 pension contribution is the largest in State history and continues the strong foundation for the State moving forward. Moreover, my budget ensures funding for our students, protects the public safety, provides property tax relief for our citizens, and preserves vital programs for our most needy and vulnerable populations,” added Governor Christie.
Key Priorities Delivered by Governor Christie’s Fiscal Year 2017 Budget:
· Includes the largest pension payment in New Jersey history with a $1.9 billion contribution to the State’s defined benefit funds.
. This will bring total contributions by the Christie Administration to $6.3 billion, nearly doubling the total contributions of every other governor combined since 1995.
· Maintains the Governor’s commitment to higher education in New Jersey to the tune of $2.2 billion in fiscal year 2017.
· Continues a sixth consecutive year of record-high funding for Pre-K through 12 public education. The fiscal year 2017 budget will spend more than $13.3 billion on education, an increase of $526 million from fiscal year 2016.
· Advances the Governor’s smarter and more effective approach to how the State supports individuals with mental health and substance use disorders.
Other Action Taken:
To address the legislature’s disturbing spending plan, the Governor issued an executive order placing millions of dollars in budget appropriations in fiscal reserve. Additionally, Governor Christie again protected taxpayers today by vetoing millions of dollars in reckless spending bills passed by legislative Democrats outside of the state budget. Among the bills vetoed were two supplemental spending bills that would have cost over $17 million:
S-2413/A-4003 (Ruiz, Rice/Pinto Marin, Muoio, Mukherji) – ABSOLUTE – Makes supplemental appropriations totaling $9,563,415 to DOH for grants of $7,765,325 to Newark Beth Israel Hospital and $1,798,090 to St. Francis Medical Center to implement improved health outcomes and sustainable transformation of healthcare delivery
A-3492/S-2277 (Mazzeo, Mosquera, Lampitt, Vainieri Huttle, Jones, Jimenez, Downey/Weinberg, Sweeney) – ABSOLUTE – Makes FY 2017 supplemental appropriation of $7,453,000 to DOH for family planning services
The Governor also acted today on other pending legislation:
Bills Signed:
S-993wGR/A-2777 (Vitale, Pou, Gordon/Wimberly, Vainieri Huttle, Sumter, Oliver) – Permits DHS to request waiver of time limits for certain Supplemental Nutrition Assistance Program recipients under certain circumstances
S-2377/A-4001 (Sarlo/Schaer) – Makes fiscal year 2016 State supplemental appropriations and amends language provisions
S-2456/A-4017 (Smith, Bateman/Andrzejczak, McKeon, Spencer, Pintor Marin, Dancer) – Revises State’s open space, farmland, and historic preservation programs; implements 2014 constitutional dedication of CBT revenues for certain environmental purposes
A-3417wGR/S-1462 (Pintor Marin/Ruiz) – Designates portion of State Highway Route No. 21 as “Roberto Clemente Memorial Highway”
A-3617/S-2390 (Green, Rible, Mukherji, Houghtaling Mazzeo/Sarlo, Kyrillos) – Extends expiration date of certain permits for one year in Superstorm Sandy-impacted counties
A-4002 (Schaer) – Revises priority schedule for issuance of converted tax credits under Business Employment Incentive Program
Bills Vetoed:
S-17/A-4000 (Sarlo/Schaer) – LINE ITEM – Appropriates $34,800,995,000 in State funds and $15,706,712,000 in federal funds for the State budget for fiscal year 2016-2017
S-1017/A-1963 (Weinberg, Greenstein/Pintor Marin, Lagana, Jasey, Mukherji, Downey) – ABSOLUTE – Provides Medicaid coverage for family planning services to individuals with incomes up to 200 percent of the federal poverty level
A-30/S-1829 (Prieto, Muoio, Oliver, Schaer, Holley, Mukherji, Quijano/Vitale, Whelan) – ABSOLUTE – Increases amount of benefits under Work First New Jersey program
A-1657/S-2168 (Schaer, Vaineri Huttle, Lampitt, Mosquera, Sumter, Wimberly/ Cruz-Perez, Turner) – ABSOLUTE – Establishes “breakfast after the bell” incentive fund
A-3410/S-1854 (Muoio, Vainieri Huttle, Mukherji, Oliver, Gusciora/Vitale, Rice) – ABSOLUTE – Repeals family cap in Work First New Jersey program

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