Assembly Republicans announced on May 27 they will not submit budget resolutions this year, saying Democrats are claiming fiscal restraint while increasing spending and deepening New Jersey’s structural deficit.
Republicans said they followed Governor Mikie Sherrill’s request not to add spending to the budget. The decision comes after weeks of caucus discussions and in response to Sherrill’s proposed budget, which increases spending by $1.9 billion and uses another $1.7 billion from the surplus to address a potential $3 billion structural deficit by the end of the next fiscal year.
Assembly Budget Officer Brian Rumpf said Republicans will not participate in what he called a “fictional exercise in fiscal responsibility.” Rumpf said, “You don’t cut spending by spending more. Only legislative Democrats can claim fiscal discipline while growing government by billions of dollars and raising taxes.” He also said years of politically driven spending and last-minute additions have widened the gap between revenues and expenditures.
Sherrill acknowledged those concerns by removing some legislatively sponsored items from her proposed budget and warning lawmakers that any new requests should be offset with cuts elsewhere. Assembly Republican Leader John DiMaio said Republicans will not legitimize a process they view as unsustainable. DiMaio said, “This budget still spends beyond our means and sticks taxpayers and businesses with the bill. Families across New Jersey are cutting back because they have to, Democrats in Trenton still refuse to do the same.”
Sherrill’s proposal raises about $750 million in new revenue through business-tax changes, including limits on corporate tax deductions and new per-employee fees for companies whose workers receive Medicaid benefits. DiMaio said, “Taxpayers are tired of the gimmicks, the pork, and the endless excuses. New Jersey doesn’t have a revenue problem. It has a spending addiction.”
Republicans criticized late-stage politically driven items added to budgets that benefit Democratic districts disproportionately; according to a recent NJ Spotlight News analysis cited during their announcement, more than 80% of such legislative spending went to Democratic-controlled districts.
