Some Budget Recommendations Will be Flat-out Rejected by Corzine
Tax increases and job cuts urged for N.J.:
Saying "pain will have to be shared," Gov. Jon Corzine's transition team is urging him to increase taxes, lay off some state workers and cut the pay of others to help get state finances under control.
The report suggested expanding the sales tax to cover clothing; tanning, massage, limousine and cable services; and purchases from the Internet, including music and software downloads. If those failed to produce a balanced budget, the report said, Corzine should consider a "temporary tax surcharge."
The team also said Corzine should consider raising the gas tax to replenish the state's Transportation Trust Fund -- a recommendation echoed by the governor's energy policy group
For the current budget, the team also recommended a series of immediate steps including a layoff plan, across-the-board salary cuts and a mandated extra vacation week without pay for state workers.
The report also calls for a tax study commission and a bipartisan "re-engineering" program to reduce spending. And it proposes to gradually phase out the pension plan for state workers, enrolling new hires in a defined contribution plan similar to a 401(k) plan.
"Some of the soon-to-be-released recommendations will be flat-out rejected by this administration," said Anthony Coley, Corzine's press secretary.
"I doubt a lot of that would turn into reality," Senate President Richard Codey (D-Essex) said of the report. "It seems a little too far-reaching for me, but you never know. We've got to see how the economy is doing. Certainly I don't think anybody in the Legislature is going to commit to anything right now."
New Jersey Government; New Jersey Taxes
