Sherlock Holmes often cautioned against the sin of hypothesizing in the absence of data. Hence, heretofore, many of us, kept in the dark about of the details of the Governor’s "super secret asset monetization program", while expressing doubts about the likelihood of a meritorious plan, refrained from a full-throated assault. After all, the slight possibility existed that Hizzonor actually might see the error of his socialist ways, adopt free market capitalism, and endorse precisely the sort of draconian "shrink government" program which circumstances so clearly require.
Unsurprisingly, ‘twas not to be.
The Governor commenced the "State of the State" by reciting a litany of recent "accomplishments", virtually every one of which cost the taxpayers dearly. He then promised more or the same, like paid family leave, yet another expensive, anti-business mandate, funded by yet another massive tax increase. The Governor finds himself in an apparent contradiction: he laments the continually awful state of State finances, but, yet, continually endorses expensive raids on the Treasury.
Since he’s a bright man, one inescapably concludes that he adopted the Codey method: stand at the podium, intone seriously, admit the problem, then do precisely nothing to solve it. Indeed, make it worse. The media credits your honest message, but the people never "hold you accountable".
First, The Guv informed us that this year’s budget will contain no net spending increase, leaving a casual observer a tad underwhelmed. During the mid-90's, Republican Legislatures twice cut spending below the previous year’s level. With six year’s of Democratic bloat since 2002 (and, to be fair, about 4 years of Republican bloat just previous thereto) to work with, cutting a paltry 15% ought to prove simple, provided that one is willing to say "no" to powerful constituencies, such as Public Employee Unions.
‘T’aint gonna happen. While talking about "cuts" today, the Governor praised the new school funding bill, which formula proposes hundreds of millions in new spending, including a brand spanking new pre-school mandate. It makes precisely zero sense to roll out a "zero increase" budget while supporting hundreds of millions in new program costs.
Second, the Governor proposes legislation limiting spending growth to the increase in recurring revenues. Now, mere legislation means bupkis. One Legislature cannot bind future Legislatures; any effective limit must be written into the Constitution. And even then, we’d depend upon our Supreme Court to enforce it. Good luck with that.
But give the devil his due. Such a provision might mandate a scootch more honesty than we typically see from Trenton – no spending increases without tax increases – but the Democrats have proven more than willing to massively increase taxes to bloat spending. More people in New Jersey profit from higher taxes than pay them; at best, this might guard against the worst McGreeveyite dishonesty. Not a bad idea, but nothing Earthshaking.
Third, the Governor proposes to rewrite a perfectly acceptable – albeit judicially ignored – provision of the Constitution proscribing any debt without a referendum. Again, not a bad thought, one which Republicans have been touting for years. But, again, a tad late; the Democrats already borrowed us into oblivion.
Fourth, Corzine proposes massive tax increases (they’re tax increases, not toll increases; tolls pay for roads, taxes pay for schools) to underwrite contract debt.
Wait; didn’t he just tell us he wanted a constitutional provision to prohibit precisely that?
He proposes creating a new entity to run toll roads. Massive toll increases would support $30 billion or so in new bonds. The proceeds from this brand new contract debt would pay down the old contract debt, freeing up "old" interest payments, which he can then spend. (Tax cuts? NEVER HAPPEN.)
And this makes sense … why?
Corzine promises that there will be no obligation, legal or moral, on the part of the people to pay back this new debt, should the entity default. Yup. That’ll happen. Just like those EDA bonds for schools. Technically, we could default; just wipe that contract debt off the books, thank investors for the donation to the socialist cause in NJ, and whistle on down the road. No legal recourse for the bondholders exists. But we’re paying them anyway.
Same thing here. Imagine, if you will, that toll revenues proves insufficient to cover a bond payment (perhaps because motorists, especially trucks, in the teeth of massive toll hikes, head to 80, 280, 287, 78, and other local highways). Is there the slightest doubt that the taxpayers would get stuck with the bill?
A constitutional prohibition on spending any general revenue funds on debt which has not been approved by the voters solves that problem (guess the name of the sponsor); but what are the chances of the Administration supporting THAT proposal?
Meanwhile, the Governor expressly foreswears cost savings measures: present employees stay on at the same conditions; fantastically expensive prevailing wage requirements remain. Forced to choose between his Big Labor supporters and the lowly taxpayer, the latter always gets the short end of the Corzine stick.
Oh, and he threatens heavy financial penalties if the newly created Highway Authority fails to meet state standards. It is to laugh: State government threatening to fine itself. Who would end up paying such a fine?
Business as usual. (Yawn) Just another new, massive tax, supporting massive new borrowing, to fund massive new spending. Just a slightly more respectable looking McGreevey. Contract debt dressed up by Goldman Sacks.
On repeated occasions since assuming office, this Governor challenged opponents to propose alternatives. Repeatedly, Republicans did just that, proposing spending cuts which negated the "necessity" for more taxation. They went precisely nowhere. The Governor has no intention of considering alternatives, if they require lower spending. He’s repeatedly said, he didn’t come to Trenton to play Scrooge, and uses taxpayer funds to stuff Tiny Tim’s stocking. (Tim now carrys a Union card)
Already, the Democrats are lining up behind this latest foray against the taxpayers’ wallets. It’s a done deal. Oh, they’ll play with it. A few Dems in tough districts may bail. (Look to Van Drew, Adler, and Stender to be exceptionally nervous during (potential) Congressional campaigns) Whelan might bail, too; you can hardly go to the supermarket in his berg without paying tolls.
But it will happen. And, when it’s done, we’ll still be in debt up to our eyeballs, spending obscenely, and taxed up the wazu. But, now, we’ll be paying our taxes with EZ Pass.
