Bucco: NJ’s Fiscal Crisis Must be Managed Responsibly

The Best Solution is not the Easy One

The fiscal impact of the coronavirus pandemic on the state appears to be more manageable than the Administration feared, and Governor Murphy must consider the latest numbers before committing to a path that will unleash economic chaos on taxpayers, said Senator Anthony M. Bucco today.

As a decision by the New Jersey State Supreme Court on the constitutionality of a massive borrowing scheme championed by Murphy is expected as early as this morning, the latest data continues to indicate the state’s revenue losses may not be as bad as expected.

A report published Monday by Politico New Jersey indicated that both the state income tax and sales tax numbers have exceeded expectations as some restrictions have been loosened and the economy opened up. The unanticipated revenue totals almost $600 million.

“We’ve been warning for months that the governor was overselling the extent of the state’s fiscal crisis. That’s why my Republican colleagues and I have strongly opposed the irresponsible borrowing plan that was sold on a false premise,” said Bucco. “On top of everything, the state is indeed facing a fiscal crisis, but it does not demand a doomsday solution that will tax our residents, the ones that don’t have any option but to remain here, for decades into the future.”

In reaction to the pandemic, New Jersey’s budget deadline was shifted from June 30 to September 30. To facilitate operations, the Administration and Legislature passed a bridge budget of almost $8 billion.

The Governor is scheduled to propose a new budget on August 25, with the availability of almost $10 billion in borrowing passed without Republican support in both houses and signed by Murphy, to be decided by the state Supreme Court.

“Once the state bonds for the money, it’s game over,” said Bucco. “Murphy and his Democrat allies have followed a spend-first approach to public money. The $10 billion will be spent and the damage will be done, left for current and future generations of New Jersey residents to clean up.”

The treasury will release updated revenue figures soon.

“Times of crisis call for measured, responsible and appropriate responses. This is no time for panic and over-reaction by the Administration,” Bucco said. “The zealous support for borrowing reflected a rush to take the easy way out. I said before the vote on the Senate floor that the plan was premature and the borrowing excessive. Details that are coming to light support my contentions.

“I am calling on the Governor to proceed with caution,” Bucco continued. “Bring all sides to the table, analyze all of the data, and craft a workable, affordable solution that will make New Jersey stronger and more competitive in the long run. That’s not the easy way out, but it is the right way.”