FY2009 Budget Facts
The state budget adopted for Fiscal Year 2009 includes painful, shortsighted spending cuts, as well as some questionable increases, like $42 million more in business tax breaks for a total of $194 million in the new fiscal year.
This is an overview of many of the cuts, from health care to the environment to child care for the working poor. One thing is clear from looking at this list: New Jersey needs better choices.
Health Care and Seniors
• The budget cuts $111 million, or 15.5% from reimbursements to hospitals for treating the uninsured.
• $19 million is cut from Pharmaceutical Assistance to the Aged and Disabled, or PAAD, program and $3.4 million from Senior Gold.
• The estimated 29,000 disabled and 139,000 seniors enrolled in the state's PAAD program will see the amount they are required to pay increase $1, to $6, for generic prescription drugs and increase $2, to $7, for brand-name medications.
• PAAD and Senior Gold also will no longer cover diabetic testing supplies.
• Participants in those programs must ask their pharmacist to bill their Medicare Part B or other health plan for items such as test strips and lancets.
• More than 6,000 residents in Senior Gold will be required for the first time to enroll in a Medicare Part D prescription plan to remain in Senior Gold -- which had been available but not mandatory.
• That registration will mean those seniors will begin paying a monthly premium to a private insurer, as well as possible late enrollment fees for those who were eligible to enroll in a Part D plan but chose not to do so.
• People who do not enroll by September 30 will be terminated from Senior Gold.
Education
• The budget cuts state support to 4-year public colleges by $93 million and to county colleges by $14.3 million.
• Rutgers received a 10.8 percent cut in state aid -- $35 million – forcing an 8.5% tuition increase for in-state undergraduates that brings the annual total to $9,268 plus room, board and fees for a total of $21,482 per year. At the same time, the university will trim each department's budget, with average departmental cuts ranging from 3.5% to 4.5%.
• New Jersey City University received a 10.3% cut in state aid. In-state tuition will rise by 7 percent, fees are going up to $2,374 and room and board costs will rise to $8,612 per year. Out-of-state tuition will increase from $12,540 to $13,418.
• Ramapo College received an 11.2% cut in state aid, forcing an 8% tuition increase and 5% hike in room and board fees In addition, the college is eliminating and deferring staff hiring; eliminating repair and renovation funds; cutting unit budgets across-the-board; eliminating the use of temp agencies; reducing the use of adjunct faculty; suspending salary range adjustments for unionized faculty and staff; reducing overtime, telephone, gasoline, printing, postage and advertising costs; eliminating employee trainings; and reducing commencement costs.
• Richard Stockton College of New Jersey received a 10% cut, the College of New Jersey 10%, Rowan University 10.3%, UMDNJ 9.7%, NJIT 11.6%, Thomas Edison State College 10%, Kean University 10.4%, William Paterson 9.9% and Montclair State University 10.1%.
• Richard Stockton College, The College of New Jersey and Hudson Community College have already announced they will have to increase tuition about 8% in the fall.
Environment
• More than $9 million was cut from core environmental protection programs, ranging from site remediation and enforcement to land use.
• Cuts to the Division of Fish and Wildlife will result in having fewer professionals to regulate fishing, hunting and other outdoor recreation activities, administer the bear education program and staff wildlife management areas.
• The Green Acres Program did not receive any new funding this year, which means it will be bankrupt by the end of the year if not replenished.
• New Jersey’s Department of Environmental Protection's (NJDEP) Division of Parks and Forestry has 40% fewer staff members than it did in 1994 and 40% more land to manage.
• NJDEP's Site Remediation Program had 270 case managers handling 12,000 contaminated sites in 1994 with just 170 case managers now handling over 18,000 sites.
State Workers
• Future government workers and teachers will have to earn $7,500 per year to receive a pension, eliminating benefits for low-wage employees.
• An early retirement incentive was offered to state workers who are at least 58 years old with 25 years of service. Only 1,488 workers had taken the offer by the August 1st deadline.
• The retirement age for all future employees was increased from 60 to 62.
Municipal Aid
• The state budget cut $162 million in municipal aid, which is likely to mean further property tax increases.
Homeowners and Tenants Rebates
• The state cut $266.5 million from the Homestead Property Tax Credits/Rebates for Homeowners. Households earning $150,000 to $250,000 will get no property tax rebates after getting an average of $745 last year. Those between $100,000 and $150,000 get two-thirds of what they got last year.
• Homestead Rebates for Tenants were cut by $116 million. Tenants earning under $20,000 will get only $80, down from $350 last year. Those making $20,000 to $50,000 will also receive only $80, down from $200 to $300 last year.
Other Programs
• The Center for Hispanic Policy, Research and Development in the Department of Community Affairs was cut 10%.
• The state cut $700,000 to local library aid, forcing reductions in services. For example, Piscataway's libraries are ending Sunday hours and bookmobile service. Highland Park had to cut $40,000 from its library budget, forcing the library to lay off staff and scale back hours.
• The Abbott Wrap-around Program, which provides parents with free child care during the hours before and after the Abbott Preschool Program, full day care when schools are closed and full day care during July and August, decreased its income eligibility level to where families of four earning between $53,000 and $61,950 will no longer be eligible for aid and must either pay $4,000 a year or take their child out of the program.
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:
* Rolling back tax cuts on the top 4% of households raises $443 million.
* Tying driving-related fees more closely to fuel efficiency and vehicle value raises $140 million.
* Closing corporate tax loopholes and reevaluating business subsidy programs raises $319 million.
* Adjusting taxes on lottery winnings and alcoholic beverages raises more than $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.