TRENTON, N.J. – New Jersey Gov. Chris Christie
on Tuesday proposed a $32.1 billion budget for the next fiscal year
that includes a small increase in school aid, flat funding for
municipalities and the modest amount needed to fund the first half-year
of his 10 percent income tax cut.
Christie's proposed budget, which he
unveiled in a Statehouse address, represents a 3.7 percent uptick in
spending to go with an improved economic forecast.
"Because we have made the tough choices in
these last two years, we can make the right ones now," the Republican
governor told a joint legislative session in which he promised to veto
any efforts by Democrats to raise taxes.
Although tax collections are lower than projected for the first six
months of the year, Treasurer Andrew Eristoff said he expects a more
robust second half. He has forecast revenue growth to top 7 percent in
fiscal year 2013.
Christie's proposal includes $212 million more for education. Most school districts would see modest increases in state aid.
The budget also contains $183 million to
fund the first half-year of the governor's 10 percent income tax cut and
money to fund a 5 percent increase in the Earned Income Tax Credit for
poor working families. The increase would boost the average benefit to
$495 per family.
Municipal aid would remain unchanged, though
less transitional aid money would be available to financially strapped
cities and towns.
Christie's budget also makes a $1.1 billion
payment to the severely underfunded pension system, up more than a
half-billion dollars from the current year's contribution. The state
agreed to phase in its annual contribution to the pension system after
Christie signed legislation requiring government workers to pay more
toward their retirement.
The proposed budget includes a $107 million increase to higher education, and recommends funding the Homestead Rebate and Senior Freeze property tax relief programs at current levels.
Christie also proposed flat funding for hospitals, which were cut last year.
The Legislature must adopt a balanced budget by July 1, the start of the new fiscal year.
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