Thursday, July 06, 2006

Tentative Budget Reached

From the Star Ledger:

Tentative budget deal struck


Gov. Jon Corzine and New Jersey’s Assembly Speaker have struck a tentative budget deal, signaling an end to the government shutdown that furloughed tens of thousands of state workers, closed state courts and parks, and halted gambling at Atlantic City casinos, four sources with knowledge of the deal said.

The specifics of the agreement were expected to be announced later today, along with a timetable for reopening state offices and casinos and resuming other services. The governor’s office said it will hold a news conference after 4 p.m., but offered no other details.

The breakthrough came on the sixth day of the stalemate and between Corzine and Speaker Joseph Roberts (D-Camden), who remained at odds over Corzine’s proposal to fill a billion-dollar shortfall by raising the state sales tax from 6 percent to 7 percent. Roberts wanted a mix of taxes and spending cuts, and insisted that any new revenues in the $31 billion budget be used to relieve property taxes.

Two sources said the compromise plan keeps intact Corzine’s sales tax hike for a decade, but calls for a 50 percent of the new revenues - an amount that would dedicated by a constitutional amendment - to be set aside to offset property taxes. In a nod to Roberts, the plan also leaves open the annual possibility of increasing that percentage dedicated to property tax relief, the sources said.

(To be updated as soon as information becomes available)

40 Comments:

Blogger Richie said...

In a nod to Roberts, the plan also leaves open the annual possibility of increasing that percentage dedicated to property tax relief, the sources said.

Yea, sure. Possible, but not probably with these crooks running this state.

-Richie

7/06/2006 02:49:00 PM  
Blogger Richie said...

probably=probable

7/06/2006 02:50:00 PM  
Blogger Richard said...

10 years or 100 years, any sales tax increase is permanent regardless of what they say.

7/06/2006 03:13:00 PM  
Blogger Grim Ghost said...

When does this become effective ? I do plan to buy a car within 1-2 months. Should do so before sales tax increase comes down the pike.

7/06/2006 03:19:00 PM  
Blogger X-Underwriter said...

So they're saving the NJ taxpayers property tax money by rasing the sales tax. I don't see anything but NJ'ers getting it the shorts again

7/06/2006 03:20:00 PM  
Anonymous Escape from NJ said...

Congrats, we all just got 1% poorer thanks to the good people in Trenton.

7/06/2006 03:25:00 PM  
Blogger Shailesh Gala said...

Since all money generated by Sales Tax will be given back in Property Tax reduction, no impact to the budget. So no change in deficit, but Corzine gets to take credit for Property Tax reforms.

Also, since it just gives back money raised in one tax to the other tax reduction, I am sure we will have good percentage of population actually paying more in Sales Tax compared to benefit received by Property Tax reductions. I bet large percentage will be the folks who are currently Renters. As Landowner's are not going to reduce rent after getting Property Tax rebate, but they still have to pay higher Sales Tax. Since Renters are only 30% of population, they don't have majority to protest against such situation.

7/06/2006 03:28:00 PM  
Blogger Shailesh Gala said...

I agree with Escape from NJ said...

Already looking to areas in PA where I can move to.

7/06/2006 03:29:00 PM  
Anonymous LeeS said...

Might as well stay in NY

7/06/2006 03:37:00 PM  
Blogger X-Underwriter said...

Shailesh Gala said...
Already looking to areas in PA where I can move to.

If you can get a job in central NJ it would probably be ok. If you work in northeastern NJ and don't want to leave that job, it will be tough though

7/06/2006 03:41:00 PM  
Anonymous Anonymous said...

"property tax relief" for who? the seniors?

7/06/2006 03:41:00 PM  
Blogger Grim Ghost said...


Congrats, we all just got 1% poorer thanks to the good people in Trenton.


You spend 100% of your income on purchases ? ANd moreover on purchases excluding food, clothes etc. that are not taxed ?

7/06/2006 03:47:00 PM  
Anonymous dl said...

"annual possibility of increasing that percentage dedicated to property tax relief,"

So - take the money out of the left pocket to put it back into the right. And this solves the problem HOW?

Start cleaning out the local polititians and end home rule. Problem 50% solved.

7/06/2006 03:53:00 PM  
Anonymous Anonymous said...

I doubt if that 1% will have any significant impact. I would be more concerned with the price of gas--more likely to put a small dent in your pocket.

NJ residents should not bitch about the 7%. I have been in parts of th ecountry that are >7.5% and these people live in rural areas without transportation, and other services.

If you don't like it, then why are you here? You have the ability to chnage it!

7/06/2006 04:10:00 PM  
Anonymous Anonymous said...

Not taxed: Food, clothing, rent. Not affected by sales tax: fuel.

Homeowners cannot reasonably be expected to tote the entire burden. Since a sales tax increase doesn't affect necessities, it doesn't unfairly burden the lower income brackets (who get more income tax relief ennyhow.)

I'm against regressive taxation as a first option. And I'd like to see some progressive income/payroll tax options considered before any future discussions to raise property taxes are initiated.

Of course we all agree that outlays and expenditures need to be cut, but Jersey's trapped into some longstanding commitments (Whitman's $9billion schools capital improvement boondoggle; stupid pension/benefit deals; practically anything NJ Democratic politicians touch, etc.). Who but the party in power gets to say which expenses are necessary and which are not? There's the rub.

Meanwhile, I make it a practice not to purchase things on a whim, so my penurious ways will ensure that the 1% sales tax hike has a minimal effect on my household.

(p.s.: NYC=8.5%, bitches!)

(p.p.s.: Shailesh Gala: You're moving to PA because of a 1% sales tax increase? Kinda melodramatic, no? )

7/06/2006 04:29:00 PM  
Blogger RichInNorthNJ said...

I have been in parts of th ecountry that are >7.5%...

Do the have an income tax and/or property tax? If so, what percentages do they use?

7/06/2006 04:33:00 PM  
Anonymous Anonymous said...

ANON say's,

NJ residents should not bitch about paying 7 % tax

Yea, don't bitch, I pay 6 % here in SC and that includes food.
My real estate taxes are $1500 a year on a house worth 700,000 -800,000 in sunny, beautiful,out of control NJ.

Damn glad I left!!!!!

7/06/2006 04:36:00 PM  
Anonymous Anonymous said...

I'm sick of this notion that property issues are a state issue - they are a local issue in every town in the state. Start going after you local government! They are the ones bleeding homeowners.

7/06/2006 04:56:00 PM  
Anonymous Anonymous said...

Amen. I too am SO GLAD I got out of Jersey last fall, and even more happy I sold my house before the crap started hitting the fan. NJ is headed down the tubes. I'm still
absolutely mystified how the people of NJ continue to accept this crap from their elected officials. When I lived there I used to blame the politicos. Now I have to say the bulk of the blame belongs to the patsies who continue to accept this nonsense.
Check out the letters to the editor
in today's WSJ. I'm also one of the 60,000 who left last year and on top of that one of the 30,000 that would have been subject to the McGreevy "up your @ss" tax. They ain't getting one more red cent from me!

7/06/2006 05:14:00 PM  
Anonymous OG said...

everything's relative, right? I just moved from Manhattan to central NJ. Sales and income taxes were higher, property taxes were way, way lower. If I owned the house I own here in NYC, my property taxes would be less than half. All that being said, I was hoping for raise in income tax rather than sales tax, but knew that legislature (and governor) wouldn't alienate their campaign-funding base (and friends) with something that made sense.

7/06/2006 06:12:00 PM  
Anonymous Escape from NJ said...

It is not that I spend 100% of my income on purchases. But any increase in taxes is less money in my pocket. If a 1% increase is not a big deal, then add up all your taxable purchases in a year, take 1% away and send it to me.

7/06/2006 06:44:00 PM  
Blogger Richie said...

Just shop online. Save on taxes, gas, time, and traffic.

7/06/2006 08:05:00 PM  
Anonymous Anonymous said...

Thank you fellow Jerseyans for voting these tax and spend liberals into office. Oh and lets not forget our billionaire limousine liberal governor who's so out of touch with the middle class homeowners/taxpayers.But none of them have to worry because no doubt they will all be re-elected. Is it any wonder why people are leaving this state in droves?

7/06/2006 08:12:00 PM  
Blogger grim said...

I second Richie's suggestion, shop online, avoid paying sales tax...

...and if you are going to shop online, you might as well do it through anticost.com

I don't plug other sites very often, but I'll make an exception this time..

grim

7/06/2006 08:31:00 PM  
Anonymous Anonymous said...

i found this entire budget process to be quite amusing... especially the part about how there's a financial crisis and yet the new budget is 10% higher than last year's -- an all-time high of $31 billion... that's pretty funny.

7/06/2006 08:49:00 PM  
Blogger chicagofinance said...

grim said...
I second Richie's suggestion, shop online, avoid paying sales tax...
...and if you are going to shop online, you might as well do it through anticost.com
I don't plug other sites very often, but I'll make an exception this time..
grim
7/06/2006 09:31:53 PM

grim:

I just want to say how appreciative I am for this service. I literally feel as if you save me at least 2-3 hours a week in research time to keep myself current. I figure that I've been participating for 30 weeks or so, and it equates to 60-90 hours. Thanks. I'll do my best to use anticost [more likely my wife :p]. ;-)

7/06/2006 09:04:00 PM  
Anonymous Anonymous said...

Anonymous said...
Thank you fellow Jerseyans for voting these tax and spend liberals into office. Oh and lets not forget our billionaire limousine liberal governor who's so out of touch with the middle class homeowners/taxpayers.But none of them have to worry because no doubt they will all be re-elected. Is it any wonder why people are leaving this state in droves?

Can you find me a politician who is in touch with the middle class? Do you think the Bush family is? Do you think the Kean family is? Is Forester in touch with the middle class?

Give Corzine a little time. He will whip NJ into shape. I never expected him to do it overnight and you shouldn't either.

7/06/2006 09:07:00 PM  
Anonymous Anonymous said...

Jersey folks, just be cautious when listening to the "Move to North Carolina" cheerleading squad.

Drop in housing sector may hit hard there.

http://www.bizjournals.com/charlotte/stories/2006/07/03/daily22.html?from_rss=1

Pat

7/06/2006 10:09:00 PM  
Anonymous Anonymous said...

Do you think it's really all that easy to move to another state? You have to leave friends and family, find a job (and the pay scale is much lower in places like the Carolinas), and adjust to a culture very unlike what you're used to. I think I'll take my chances with the 1% sales tax hike.

7/06/2006 10:33:00 PM  
Anonymous Anonymous said...

I suppose it's personality type/trait.

Some people find a move to be a new lease on life...or just a great part of life.

7/06/2006 10:45:00 PM  
Anonymous Anonymous said...

Anonymous said:

Can you find me a politician who is in touch with the middle class?
Do you think the Bush family is? Do you think the Kean Family is? Is Forrester in touch with the middle class?
Give Corzine a little time. He will whip NJ into shape. I never expected him to do it overnight and you shouldn't either.

No, I don't think that Bush, Kean, or Forrester are in touch with the middle class. Christie Whitman certainly wasn't and neither is Corzine. Since you have great confidence in Corzine, I'd like to know how you think he's going to "whip NJ into shape". It's people like you who prove my point. Thanks.

7/07/2006 12:20:00 AM  
Anonymous Anonymous said...

he's a whore just like the rest of
them.

He marched with the union, that's
enought for me.]

When is the last time property taxes went down?? Not in our lifetime, or ever,,

NJ is a welfare state.

7/07/2006 06:16:00 AM  
Anonymous Anonymous said...

Anonymous said... Since you have great confidence in Corzine, I'd like to know how you think he's going to "whip NJ into shape". It's people like you who prove my point. Thanks.

That's something that will be answered in good time. In the meantime, read Tom Moran's column in today's Ledger. Quite honestly, it people like you who end up proving MY POINT.

7/07/2006 08:16:00 AM  
Anonymous Anonymous said...

just my opinion... but that's a typical NJ paper... all spin... who cares about the battle... the bottom-line is... the gov raised taxes to plug a spending gap... as opposed to cutting spending.

7/07/2006 09:08:00 AM  
Anonymous Anonymous said...

I've been looking for a house in the Charlotte suburbs for the past year. The prices are also ridiculous. I've seen all-brick houses, 3500 sq ft, in nice developments asking for $650k. That might sound low to the NJ/NYC crowd, but the NC/SC salaries are a lot lower too. Plus, these suburbs are 3-4 hours away from a beach! The bubble exists here too. Builders are having a hard time selling their latest projects at these price levels.

7/07/2006 09:27:00 AM  
Anonymous Anonymous said...

Trying looking in South Carolina.

It's 20 miles from charlotte.
Many business folks commute from
over their.

Much lower cost.

7/07/2006 09:42:00 AM  
Anonymous Anonymous said...

Corzine, he will turn out to be just as big a whore as the rest of
them.

7/07/2006 09:44:00 AM  
Anonymous Anonymous said...

Anonymous said...
just my opinion... but that's a typical NJ paper... all spin... who cares about the battle... the bottom-line is... the gov raised taxes to plug a spending gap... as opposed to cutting spending

You clearly do not understand the media. Tom Moran is a columnist, so of course there's "spin." If you read Mulshine, he'll "spin" it another way. But Moran (who if you've followed his columns, generally sways to the right)is presenting the direction Corzine is heading -- away from the power bosses. etc. Put the negativitiy away and give Corzine time to make a difference. Just the fact you imply he could turn things around overnight proves either ignorance or closemindedness. If you consider a 1% "hike" in sales tax as "raising taxes," you're way off. I don't see property taxes being raised. As a matter of fact, part of the sales tax will go to property relief. I don't see income tax being raised either. I'd be more upset if either one of those taxes were affected. Those are the taxes that would have a greater impact on people than the sales tax.

7/07/2006 10:16:00 AM  
Anonymous Anonymous said...

Better be careful about shopping online, at least NY is whining VERY LOUDLY about collecting sales tax owed on out-of-state catalog/internet purchases, to be estimated and filed with NY state income tax...

Kinda like how NY was sending cop cars to trawl Ikea (and 3% zone) parking lots for NY plates awhile back..

And Corzine won't be able to do jack squat unless and until home rule is destroyed. Just too much cruft in there, too many nooks and crannies for incompetence and corruption to fester.

7/07/2006 11:34:00 AM  
Anonymous Anonymous said...

Anonymous said...
Kinda like how NY was sending cop cars to trawl Ikea (and 3% zone) parking lots for NY plates awhile back..

Are you serious?

7/07/2006 12:18:00 PM  

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