Tax cuts for businesses and tax relief for homeowners will be two key proposals in Gov. Chris Christie's budget address.
The governor will lay out his budget priorities for the next fiscal year in a speech on Tuesday to a joint session of the state Legislature. It's Christie's second budget address as governor.
Christie is expected to stick with his prinicple of fiscal restraint. In a speech in Washington, D.C. on Feb. 16 he said this a historic opportunity to restore fiscal health and achieve real government reform. The speech titled "It's Time to Do the Big Things," focused on what Christie called "fiscal sanity," with a focus on entitlements and education.
Christie is expected to propose making a pension payment of up to $512 million, the minimum specified in a new law to force the state to begin paying its share into the system.
The pension system for state, county and municipal workers, judges, police and firefighters and teachers is underfunded by $54 billion. The state health care system is underfunded by $67 billion.
The governor is expected to renew his call for state workers to delay retirement and pay more into both the pension and health care systems.
Gov. Christie will probably provide more money for property tax relief. Rebates were suspended through most of the current fiscal year. New Jersey's property taxes are the highest in the nation, with the average homeowner paying more than $7,000 per year.
Politics
Christie has built a reputation as a fiscal conservative. His budget address is expected to be closely watched in other states facing similar budget challenges.
The Democrat-controlled state Legislature has already clashed with the governor on his spending priorities. The state spending decisions will also have a major impact on New Jersey mayors facing growing budget gaps.
The 2011-12 fiscal year begins July 1.
