Budget Facts

The proposed state budget takes New Jersey in the wrong direction, cutting vital services and jeopardizing our future. Under the proposed budget:

  • Our hospitals will lose $144 million, forcing some hospitals to close their doors and patients to travel dangerous distances and wait longer in emergency rooms.
  • Medicaid funding for nursing homes will be cut by $90 million, which will compromise the care given to the poorest, sickest and most vulnerable New Jersey residents.
  • Our colleges and universities will lose $76 million, meaning cuts in financial aid, higher tuition rates for students and their families, and a less competitive New Jersey economy.
  • Our towns will lose $190 million in aid, increasing the property tax burden and threatening public safety.
  • Our lowest-income residents will owe higher taxes as homestead rebates for renters are slashed.
  • Out-of-pocket prescription drug costs for our seniors, disabled residents and low-income families will increase by at least 40% as Medicaid and Pharmaceutical Assistance to the Aged and Disabled are reduced, forcing our seniors and vulnerable residents to neglect medical needs.
  • Community service agencies will be forced to scale back as their budgets are reduced by $42 million.
  • Quality of life will suffer as parks are closed, environmental inspections are reduced, and libraries, museums and after-school programs are downsized.

The consequences will be devastating:

For our families, who can’t afford higher property taxes.

For our seniors, who can’t afford higher prescription drug costs.

For our students, who can’t afford higher tuition.

For our communities, which can’t afford a lower quality of life for their residents and businesses.

Governor Corzine has encouraged people to come forward with alternatives to the proposed budget. The Better Choices Budget Campaign urges our legislators to look at sensible revenue options to fund the services and investments we depend on. Instead of short-sighted budget cuts that threaten services and growth, we need long-term solutions that help build a stronger economy. There are fair, realistic and environmentally sound ways to meet New Jersey's needs. For example:

  • Increasing state income taxes on the top 10% of households raises up to $500 million.
  • Tying driving-related fees more closely to fuel efficiency and vehicle value raises up to $545 million.
  • Closing corporate tax loopholes and reevaluating business subsidy programs raises up to $300 million.
  • Adjusting taxes on lottery winnings and alcoholic beverages raises up to $80 million.

We urge New Jersey’s elected officials to make Better Choices for New Jersey.
A Better Choices Budget is the Right Choice for New Jersey's Future.

UPDATE:  Read this paper by Nobel Prize-winning economist Joseph E. Stiglitz that demonstrates that state budget cuts during a recession are counterproductive:  http://www.fiscalpolicy.org/10-30-01sfp.pdf