Veteran budget observers say Christie's plan looks a lot like the 'old normal,' since governors routinely ignored the state's full funding obligations in tough times Watch video
Governor Chris Christie gestures with his finger as he talks about his proposed changes in his budget address.TRENTON — In delivering his annual budget address, Gov. Chris Christie offered a new approach to solving the state’s habitual and well-publicized deficit: ignore it.
Calling it the "new normal," Christie said the governor’s office will no longer focus on how budgets don’t fully meet state laws requiring spending — such as for public schools or property tax rebates — that make up the bulk of the deficit.
With the state constitution requiring governors to sign a balanced budget, Christie says the state should change how it determines its deficit at the beginning of each budget season.
"We will no longer blindly fund commitments that prior legislators and governors have made, regardless of whether they were wise, and regardless of whether they yielded programs that even work," Christie said in his address last week.
Veteran budget observers, some of whom helped put together previous state spending plans, said Christie’s "new normal" looks a lot like the "old normal," since governors routinely ignored the state’s full funding obligations in tough times.
And critics suggest a political motivation. Assembly Budget Committee Chairman Lou Greenwald said Christie is simply making the deficit disappear through a rhetorical slight of hand. Greenwald contends Christie is doing this because he spent the last year padding his conservative credentials by boasting he cut the state’s deficit without raising taxes.
"In reality, he didn’t. He just didn’t pay the bills," said Greenwald (D-Camden). "Now, because the deficit is still there, he’s just wishing it away to help keep his shining political star bright, but he can’t have it both ways. This is not a new normal, this is an old shoe, just more comfortable."
Last year, Christie faced a $10.7 billion budget deficit, a staggering figure that assumed the state would fund all of its obligations.
Christie balanced the budget by skipping a $3 billion pension payment, slashing school and municipal aid and suspending property tax rebate checks. Just after the budget was signed, the non-partisan Office of Legislative Services, using the same criteria, estimated Christie would face a $10.5 billion deficit for the fiscal year that begins July 1.
Christie’s proposed budget would keep spending about the same. While state aid for schools would rise, it would still be well below levels required by law. For example, OLS estimates "full funding" for schools at $10.1 billion, and $3.09 billion for pensions. Christie proposed $8.12 billion in school aid and only a fraction of the pension payment.
Christie expects OLS will soon issue a report saying his proposal falls short of obligations.
"The only problem is that this number assumes no one is actually managing the budget or setting priorities," Christie said in his address. "That is yesterday’s New Jersey."
Brian Sigritz, director of fiscal studies with The National Association of State Budget Officers, said there is no national standard when it comes to states defining their own deficits.
"Generally speaking, states apply their own rules, but all take into account anticipated revenues and expenses," said Sigritz.
Asked if the governor stands by his claim that he cut last year’s deficit, Christie spokesman Michael Drewniak responded, "We are keenly aware of our obligations, and we intend to fund them according to priority and need, in the context of a constitutionally balanced budget, without adding new taxes."
Richard Keevey, a professor with Rutgers University who served as budget director under former Govs. Tom Kean and Jim Florio, said Christie is setting a new tone that focuses more on available resources and adjusting priorities, as opposed to what requirements the state is not meeting.
"People always come up to me and say, ‘New Jersey has a deficit,’ and I always tell them that the state has never had a deficit because governors just don’t meet all of their obligations and balance the budget," said Keevey.
However, Liz McNichol, a senior fellow with the Center on Budget Policies and Priorities, said recognizing legally defined spending obligations is important because it helps the public understand where services are not at desired levels: "Looking at what it would cost to continue a program is good, because if it’s cut, then there is a cut in services."
Drewniak said Christie’s approach is akin to what families do. "They do not say to themselves, ‘Two years ago, we went out to dinner three times a week; we must continue that tradition because we really liked it.’ No, they look in their wallets and bank accounts, accept what is in them and act accordingly."