Dear Friends,

 

Yesterday and today, you may have read media reports about higher-than-expected revenues coming into the state budget. The so-called windfall may tempt some in New Jersey's government to increase spending by a similar amount, and I wanted to share CIANJ’s position with you.

 

In February, Governor Corzine introduced a budget that would reduce government expenditures for the first time in a decade. CIANJ applauded the governor at the time, and we called on the legislature to pass a budget that reduces spending and the bloated size of New Jersey’s government.

 

I just returned from a press conference at which I stood with the leaders of the Healthcare Institute of New Jersey, The New Jersey Business and Industry Association and the New Jersey Chamber of Commerce. At that press conference, which was held in the State House, the business community stood united and renewed its call that spending not increase, regardless of new budget projections.

 

New Jersey’s long-term fiscal challenges are just as relevant and its government just as swollen as in February. The legislature must reduce spending this year, and set New Jersey on the path back to fiscal responsibility. Below is the statement I delivered today, on behalf of the members of CIANJ, in its entirety. Please feel free to write or call with any questions.

 

Sincerely,

 

 

 

John Galandak

President

Commerce and Industry Association of New Jersey

 

P.S. I look forward to discussing these issues and more with many of you tomorrow night at the Bruce G. Siminoff Legislative One on One Dinner. If you have not already registered, there are still a very limited number of tickets remaining. To join us tomorrow, register on our website.

Good afternoon and thank you for joining us. My name is John Galandak, and I am President of the Commerce and Industry Association of New Jersey. I stand here today as a representative of a business community that, after years of frustration over excessive spending, is hopeful that the climate in Trenton is finally changing.

 

When Governor Corzine delivered his budget message in February, we called it a step to fiscal sanity in the state. New Jersey’s recent tradition of irresponsible spending and ill-advised taxing and borrowing has finally caught up with us, and the Governor’s plan to deliver a budget that actually reduced government expenditures had to be phase one of changing that paradigm.

 

Nothing has changed between that address and today. New Jersey still has long-term issues of debt, unfunded pension liabilities, and transportation and infrastructure needs. The news of increased state revenues this year does not lessen those long-term threats, nor does it diminish the need for a reduction in spending.

 

Therefore, our message today is simple – the legislature must pass a budget that spends less than the state did last year.

 

New Jersey's overburdened taxpayers - both corporate and individual - cannot afford a budget that increases spending. Holding the line on spending this year will mean the legislature has taken the first step toward changing a legacy of debt into one of fiscal responsibility, and creating long-term solutions for our transportation and infrastructure needs.

 

While reducing spending this year would be significant, we also need to ensure that legislatures cannot irresponsibly saddle future generations with debt. Therefore, we continue to support the Lance-Lesniak Amendment (Senate Concurrent Resolution 39), which would require voter approval for future borrowing. CIANJ supports placing this issue before the voters this November. The sooner the proposed Constitutional Amendment is placed on the ballot, the sooner New Jersey can restore its long term finances and the trust of its people.

 

CIANJ looks forward to working with the legislature on these issues and to helping make New Jersey an even greater place to live, work and conduct business.