Herald News: Coalition targets cuts, Urges Corzine to raise tax on state's wealthiest

HACKENSACK -- A newly formed coalition of environmental, labor and community organizations is urging Gov. Jon S. Corzine and the Legislature to look for alternatives to proposed budget cuts that they say will hurt the state's most vulnerable residents.

In the state with the highest percentage of millionaires and the second highest median income in the country, activists argued that those budget cuts can be averted by increasing some taxes.

"In Paterson, my congregants are concerned about the effects of the budget cuts on the public schools," said the Rev. David Thornton of the United Presbyterian Church, who led a press conference Thursday in front of the Hackensack Municipal Court. Thornton said the recent closure of Barnert Hospital and increased property taxes were also hurting Paterson residents. "The real discussion that needs to take place is not about overspending, but about under-investing," Thornton said.

Thornton, joined by leaders of the AARP, Health Professionals and Allied Employees, New Jersey Environmental Federation, and others, said budget cuts could be averted if the state found new sources of revenue, such as small tax increases on the wealthiest 10 percent, which he said could bring in up to $500 million.

"This budget lowers quality of life, raises property taxes and prevents us from making necessary investments in our state's future," said Eva Bonime, executive director of the New Jersey Working Families Alliance.

Matt Shapiro, president of the New Jersey Tenants Organization, said cuts of $189 million in state aid to municipalities would drive up property taxes, and in turn, increase rents for tenants. He criticized the governor's proposal to reduce renters' property tax rebates, which were previously as much as $350, to just $80.

"How can anyone think that balancing the budget on the backs of lower-income renters, the most vulnerable families in the state, is a reasonable budget choice?" Shapiro asked.

Sy Larson, New Jersey state president of the AARP, called on Corzine to rescind cuts to Pharmaceutical Assistance to the Aged and Disabled and proposed increases to Medicaid co-payments. With out-of-pocket drug costs going up, he feared seniors would have to choose between food and shelter and taking medication.

Other measures proposed Thursday, in what the coalition is calling the "Better Choices Budget Campaign," include raising the motor fuels or petroleum gross receipts tax, closing corporate tax loopholes, and raising taxes on gambling and alcoholic beverages.

Jim Gardner, a spokesman for Corzine, said he was not open to any alternative taxes to close the budget gap. "The citizens of New Jersey are taxed enough," Gardner said, "This is the time when state government needs to be living within its means."

Reach Heather Appel at 973-569-7113 or appelh@northjersey.com.

Originally published here: http://www.myheraldnews.com/view.html?type=stories&action=detail&sub_id=32963