Vol. 5 No. 2, February 2008
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It’s the Economy, Stupid
It amazes me sometimes to see how free politicians are with our money. The stem cell referendum last November—with research facilities to be paid for by the taxpayers—is a case in point. Yes, we’d all like to find cures for the diseases that haunt our society. But what role should the state have in finding these cures? Beyond providing some incentives for companies that do the research, there should be no role whatsoever. After all, should one of these companies come up with a cure, they’ll make billions, we’ll all be better off, and the users of the cure (and their insurance companies) will pay. Not the taxpayers. And that’s as it should be. Thankfully, New Jersey’s voters agreed and the effort was turned away.
Now, if we can get the state to recognize that tax money is our money—not money to be squandered on cushy jobs, contracts and pensions for political buddies—we might have a chance to reverse the downward spiral created by the politicians. This month, we debut a column by Jessie Kurtz, editor of the online media website the Atlantic City Scoop. Kurtz is young, much younger than me, but has a wisdom that belies his years. Born and raised in Atlantic City, he has very simple and direct suggestions for Atlantic City public officials on how to fix the mess they created in City Hall.
Kurtz’s common-sense solutions can also be applied to the state. The increase in the state budget is not only ill-advised, it borders on criminal. We’re choking on property taxes in this state and the elected politicians do nothing. And when you read about political corruption (we’ve got plenty of that in AC), it’s infuriating.
I have to admit, I’m quite disappointed in Governor Jon Corzine. I hoped that a man with so much experience and knowledge of financial affairs would put some creative suggestions together to put the state on the road to solvency. To his credit, he avoided the dreaded state shutdown in the last budget cycle. But we’ve already been warned that the ’08 budget crisis will be much deeper and harder to solve.
And Corzine’s proposal last month to raise tolls as much as 800 percent in the next 25 years is simply moronic. New Jersey is already the butt of jokes in every state in the nation. Now that you’re going to have to mortgage your home to drive through the state, what else can you expect?
In Nevada, where we also have a Casino Connection, Governor Jim Gibbons made a “no new taxes” pledge when he took office last year, and he’s stuck to it. He instituted mandatory budget cuts of 4 percent and more in all state spending. Yes, it’s been painful in a state where growth is an issue. But it has been accomplished, without much damage to essential services.
In New Jersey, where there is business contraction rather than growth, state government should institute cost cuts, make deep and lasting spending reductions, give homeowners the same tax breaks they offer to developers, and concentrate on making this a better state for those here now, not for those they may want to attract.
Corzine says we can’t cut our way out of the current budget crunch. But cuts can start and they should be instituted now, not sometime down the road. While we’re at it, why not sell some state land, like the Meadowlands complex, and let private companies run the stadiums and the state’s horse racing industry?
Everyone jumped up and down when Corzine suggested leasing the toll roads, but wouldn’t that be better than the massive toll hike he’s suggesting? With a lease, at least the company running the roads would have to justify any toll increase. With the state owning them, they just hike tolls every time they need revenue.
The governor has taken the first important steps of freezing spending and making new borrowing subject to voter approval. But nothing can be accomplished without spending cuts and a commitment from the government to reduce costs. But somehow, I don’t think that is forthcoming.
