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Gov. Murphy Continues to Claim $10 Billion Revenue Loss, Which Is Misleading and Exaggerated
The Republican members of the Senate Budget & Appropriations Committee wrote a letter (click here for PDF) to New Jersey Treasurer Elizabeth Maher Muoio urging the State to file new disclosure statements with financial markets to correct grossly pessimistic revenue forecasts. They said an estimated $10 billion revenue loss that Governor Murphy continues to reference is “misleading and exaggerated.”
The Republican members of the Senate Budget & Appropriations Committee urged N.J. Treasurer Elizabeth Maher Muoio to file new disclosure statements with financial markets to correct grossly pessimistic revenue forecasts, saying an estimated $10 billion revenue loss that Gov. Murphy continues to reference is “misleading and exaggerated.” (©iStock)
The members, Senate Republican Budget Officer Steven Oroho (R-24), Senator Sam Thompson (R-12), Senator Declan O’Scanlon (R-13), and Senator Michael Testa (R-1), noted that actual sales tax collections for June were down just 4.6% compared to the same period last year, while the Murphy Administration had estimated a 30% loss. Similarly, they said non-partisan revenue forecasters believe both the Gross Income Tax and Corporate Business Tax have meaningfully exceeded May projections.
They warned: “If an ordinary citizen were to knowingly exaggerate their financial condition and need for money in an effort to secure federal loans and grants, they would risk charges of fraud and prosecution.”
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Senator Sam Thompson (R-12) delivered the following remarks during the Senate Budget & Appropriations Committee today panning a $10 billion borrowing plan (S-2697/A-4175) proposed by Governor Phil Murphy and Democratic legislative leaders that could cost New Jersey taxpayers tens of billions in debt and interest payments over the next 35 years:
Sen. Sam Thompson’s remarks during the Senate Budget Committee’s consideration of a $10 billion borrowing scheme being advanced by Gov. Murphy and Democrat legislators. (Pixabay)
First off Mr. Chairman, I’d like to say I’m sorry this bill is being rushed. It is indeed unfortunate that this meeting, despite a bill not even being available to the public and not having been introduced yet, was scheduled Friday night with no meaningful notice. The pace at which this bill is moving is unnecessary.
The bill is simple. It’s giving authority to the Governor to issue $10 billion of debt to wash into the 2021 budget that starts October 1. It will be a one-shot revenue, leaving up to a $10 billion budget hole to be fixed in 2022 by either Governor or his successor. Worse than leaving today’s problem to be fixed in 2022, the borrowing will make the problem much worse by adding tens of billions of dollars of interest payments and hundreds of millions of dollars in financial fees and commissions.
The borrowing is incredibly irresponsible. It’s four times larger than the next biggest borrowing in the state’s history. It will throw a $10 billion anchor around the necks of people who are already struggling to make ends meet.
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The Republican members of the Senate Budget & Appropriations Committee issued the following statements in response to a private, partisan agreement between Governor Phil Murphy and Democrat legislative leaders to borrow $10 billion to fund State spending next year.
Statements from Republican members of the Senate Budget & Appropriations Committee in response to a private, partisan agreement between Gov. Phil Murphy and Democrat legislative leaders to borrow $10 billion to fund State spending next year. (黑洞加速器破解版app)
Senate Republican Budget Officer Steven Oroho (R-24): “My predecessor, Senator Bob Littell, called a debt issuance one-quarter this size in 1997 ‘wacko.’ Today, taxpayers are still paying off that debt. This debt issuance is ‘wacko’ on steroids. It’s billions of debt for operating expenses with tens of billions of interest more, and won’t be paid off for decades. It’s unbelievably irresponsible. I appreciate the magnitude of the fiscal crisis we are in, but we haven’t even exhausted other fiscal management practices. This borrowing scheme is reckless behavior that will only exacerbate our problems long term.”
Senator Michael Testa (R-1): “The Governor and Democrats agreeing to issue $10 billion of debt for operating expenses isn’t just unconstitutional, it’s insane. Taxpayers will be paying for this madness for the next 35 years.”
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Entire Caucus to Vote “NO” on Murphy’s Conditional Veto of S-2350/A-4132
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Senate Republicans panned Gov. Murphy’s furlough plan as ‘too little, too late,’ saying his delayed action has left hundreds of millions of federal dollars on the table, and will leave State government offices understaffed just as they begin to reopen facing a backlog in citizen needs. (Pixabay)
The members, Senate Republican Budget Officer Steven Oroho (R-24), Senator Sam Thompson (R-12), Senator Declan O’Scanlon (R-13), and Senator Michael Testa (R-1), issued the following joint statement prior to today’s Senate session when the entire Senate Republican caucus will vote “NO” on accepting the the governor’s recommendations in his conditional veto of S-2350/A-4132:
“Like many aspects of Governor Murphy’s response to the coronavirus crisis, his delayed action on furloughs is too little, too late. By failing to enact the original legislation when it passed the Legislature in May with overwhelming bipartisan support, he left hundreds of millions of federal dollars on the table. Even worse, the cost of furloughing workers going forward will be paid almost 100% by New Jersey taxpayers, when the cost of the original bill would have been picked up entirely by the federal government. To say the governor’s inaction represents a missed opportunity would be an understatement.
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The four Republican members of the Senate Budget & Appropriations Committee will vote against a massive $7.7 billion spending bill (S-20) to extend the FY 2020 State Budget after the Murphy Administration refused to consider responsible options to achieve savings.
The four Republican members of the Senate Budget & Appropriations Committee will vote against a massive $7.7 billion spending bill to extend the FY 2020 State Budget after the Murphy Administration refused to consider responsible options to achieve savings. (Pixabay)
The members, Senate Republican Budget Officer Steven Oroho (R-24), Senator Sam Thompson (R-12), Senator Declan O’Scanlon (R-13), and Senator Michael Testa (R-1), issued the following joint statement:
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30,000+ State Employees Would Still Get 4 Percent Salary Increases
Senator Republican Budget Committee Members Steven Oroho, Sam Thompson, Declan O’Scanlon, and Michael Testa, said if a preliminary agreement announced by Governor Phil Murphy with the Communications Workers of America would continue giving out average 4 percent salary increases, then it falls far short of the savings that could be generated if the state’s public employee unions had been asked to agree to a simple wage freeze.
Senator Republican Budget Committee Members Steven Oroho, Sam Thompson, Declan O’Scanlon, and Michael Testa, said if a preliminary agreement announced by Governor Phil Murphy with the Communications Workers of America appears to fall far short of the savings that could be generated if the state’s public employee unions had been asked to agree to a simple wage freeze. (Pixabay)
State employees generally receive an approximately 4 percent salary increase annually on the anniversary date of their hire, known as a “step increase.” Additionally, they receive a 2 percent salary increase (called a cost of living adjustment, or COLA) once a year. Combined, the step increase and COLA result in typical salary increases of approximately 6 percent for most unionized State employees.
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Republican Senators Oroho, Bucco, Testa and Thompson vow to support the manufacturing community
The state’s bipartisan legislative manufacturing caucus held a virtual round table discussion today on the impact of the coronavirus on business, and challenges manufacturers face as the economy opens up.
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Republican Senators Steve Oroho, Anthony M. Bucco, Michael Testa and Sam Thompson were among the Legislators hearing almost a dozen top-level manufacturing leaders addressing the status of the vitally important sector and the its fiscal outlook.
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The following was released today by Senator Steven Oroho (R-24), Senator Declan O’Scanlon (R-13), Senator Michael Testa (R-1), and Senator Sam Thompson (R-12), the Republican members of the Senate Budget & Appropriations Committee:
In advance of the Governor’s May 22 budget report, the Republican members of the Senate Budget & Appropriations Committee issued a joint position statement. (Pixabay)
The State’s budget has been significantly impacted by COVID-19. Revenue losses through the end of FY 2021 will be severe and there is a need for additional relief for impacted people and businesses. There is broad and bipartisan recognition of this reality in the Legislature and among the public.
For the past two months, the Governor has provided no public accounting or explanation of the budgetary impacts of COVID-19. Despite holding daily press briefings attended by various cabinet officials, the Treasurer has not been invited to a single briefing to explain budget impacts for the public or, more importantly, to answer reporters’ questions about what steps, if any, are being taken to address these impacts.
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Billions in Spending Increases Proposed Before Crisis Remain Unchanged While Emergency Programs to Keep People Employed Run Dry Within Minutes
The Republican members of the Senate Budget & Appropriations Committee called on Governor Phil Murphy to announce which of the billions of dollars in new programs and spending and school aid increases he proposed in February will be scaled back to better fund emergency programs that are critical to helping small businesses survive and hundreds of thousands of New Jerseyans to stay employed.
The Republican members of the Senate Budget & Appropriations Committee called on Gov. Murphy to reset his budget priorities to better meet the State’s emergent needs due to COVID-19. (Pixabay)
They noted that the Governor’s budget, which was proposed before the economy was shut down, has become unrealistic because, as the Governor himself has said, “revenues have fallen off a cliff,” while the State has new obligations to help businesses and people impacted by COVID-19. As a result, schools, municipalities, and those promised increased State support in February must be leveled with by the Administration that some of the increases originally promised prior to the crisis are now impossible, giving them the opportunity to plan accordingly.
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The Senate approved legislation today that would expand the Governor’s authority to freeze rent hikes in times of emergency. The bill, S-2341, sponsored by Senator Samuel Thompson and Senator Joseph Vitale would give the Governor the ability to put a complete freeze on rent increases for commercial tenants with fewer than 20 employees, as well as residential tenants, regardless of any inflation that may have occurred during the period of the notice.
Sen. Sam Thompson’s bill to allow the Governor to freeze rent hikes for small businesses hit hard by the coronavirus crisis passed the Senate today. (©iStock)
Current law allows the Governor to freeze only residential rent increases, not commercial, with a “Notice of Rent Protection Emergency” (NRPE) and landlords are still able to take inflation into account. This bill will amend the NRPE statute and enhance the Governor’s powers in states of emergency.
