Governor credits bipartisan spirit as key to passage

(TRENTON)-Governor James E. McGreevey commended the bipartisan spirit of the Legislature today as he signed into law six pieces of legislation that constitute key components of his Fiscal Year 2002 budget proposal. McGreevey had outlined his proposal during an emergency address to the Legislature on February 11th.

"Today, I am proud to announce that a spirit of bipartisanship has prevailed," said McGreevey. "On February 11th, I announced a series of proposals requiring legislative approval to close the remainder of this year's $3 billion shortfall. I urged the members of the Legislature to join me in setting aside partisan politics and in working together toward this common goal. Today, that goal was accomplished."

In February, McGreevey stood before a joint session of the Legislature and outlined his plan to balance the FY 2002 budget, which contained a deficit of nearly $3 billion. In addition to announcing a broad range of executive actions to save the State approximately $1 billion, McGreevey stated that in order to balance the remainder of the budget, legislative action on certain proposals would be necessary.

The six bills signed into law today will provide over $287 million towards solving this year's $3 billion problem. Four of these bills transfer money out of accounts in which it is not being used. The fifth bill extends by 15 days the deadline for distributing the Energy Tax Receipts Property Tax Relief Fund to municipalities operating on a calendar year budget. The sixth bill creates a tax amnesty program, which establishes a 60-day period for payment of any outstanding tax liability for returns due between January 1, 1996 and January 1, 2002.

These bills are:

• NJ Housing and Mortgage Financing Authority Transfer: Directs the NJHMFA to transfer funds from its reserves into the General Fund. This bill is expected to provide an additional $25 million in revenues.

  S-13 (Rice D-Essex)
  A-2002 (Tucker D-Essex, Payne D-Essex, Union)

• Health Care Facilities Financing Authorities Transfer: Provides for a transfer $16.5 million of NJHCFFA reserves to the General Fund for the purposes of hospital charity care.

  S-19 (Vitale D-Middlesex, Buono D-Middlesex)
  A-2005 (Weinberg D-Bergen, Quigley D-Bergen, Hudson)

• Temporary Disability Insurance Fund Transfer: Provides for a transfer of funds up to $50 million from the State Temporary Disability Insurance Fund to the General Fund.

  S-17 (Codey D-Essex)
  A-2006 (Cohen D-Union, Wisniewski D-Middlesex)

• Second Injury Fund Surcharge Transfer: Concerns the calculation of Second Injury Fund surcharges and would provide an additional $20 million in revenues.

  S-15 (Adler D-Camden)
  A-2007 (Weinberg D-Bergen, Steele D-Bergen, Passaic)

• Energy Tax: Extends by 15 days the time for distribution of a portion of the Energy Tax Receipts Property Tax Relief Fund aid to be paid to municipalities on a calendar year budget. This bill is expected to provide an additional $26 million in revenues.

  S-12 (Suliga, D-Middlesex, Somerset, Union)
  A-2004 (Caraballo (D-Essex, Union; Impreveduto D-Bergen, Hudson)

• Tax Amnesty: Establishes a 60-day tax amnesty period for the payment of any outstanding tax liability for returns due between January 1, 1996 and January 1, 2002. Any taxpayer who failed to pay State taxes during this period has until June 10, 2002 to pay the due taxes without penalty. This bill is expected to raise an additional $150 million in revenues.

  S-16/ S-404 (Buono D-Middlesex; Kavanaugh R-Morris, Somerset; Lance R-Warren, Hunterdon)
  A-2001 (Greenwald D-Camden; Pou D-Bergen, Passaic)

On March 26th, McGreevey will again address the Legislature on how he plans to close the $6 billion budget gap facing the State in the next fiscal year. He said he will work to forge the same bipartisan spirit as his Administration works with the Legislature to provide a fiscally responsible budget.

"I am confident that the same spirit of cooperation that has led to the passage of these bills will continue to guide us as we complete this year's budget and work together to address the $6 billion challenge that lies ahead for next year," said McGreevey.