Gov. Christie says projection of $10.5B shortfall for next year is 'fake'

Governor blasts Office of Legislative Services report that said next year's budget challenges could be just as difficult as this year

Amanda Brown/The Star-LedgerNew Jersey Governor Chris Christie in this file photo at the Statehouse.

TRENTON — Gov. Chris Christie today said a projection that the state faces a $10.5 billion budget deficit next year is "completely fake" and he will build upon the deep cuts he made this year.

The Republican governor blasted a report from the nonpartisan Office of Legislative Services, obtained by The Star-Ledger earlier this week, that said next year's budget challenges could be just as difficult as this year.

Christie said the projection was invalid because OLS counted all mandatory increases in state funding and assumed all programs now in the budget would be included next year.

"This is a mindset that says, 'We're going to build back all the cuts the governor made this year, and we're going to then give it the hands-off-the-wheel enhancement,'" Christie told reporters during a press conference on the boardwalk. "The number is completely fake, and doesn't understand the new reality, which is I'm not going to approve spending that goes over that."

This year, Christie closed what he calls an $11 billion deficit in part by refusing to pay for similar mandated cost increases. He skipped a $3.1 billion payment to the pension fund, and did not pay $1.7 billion to schools under the state's formula for education aid.

He indicated today he doesn't plan to make up the difference next year.

"The new bar is set. The place to reduce from is where we are now," Christie said. "We're going to have a budget situation to deal with if the economy doesn't pick up more, of course we are. But it's not going to be as severe as the one we had to deal with last year."

He also said if revenue problems emerge in the current fiscal year — such as Congress not approving additional Medicaid funding for states — "we'll adjust."

"I still believe that when you have 47 governors saying that extending Medicaid makes sense...there's still a good chance that Congress will do that," Christie said.

Democrats, who requested the OLS analysis, said the report shows the governor should stop taking credit for solving New Jersey's budget problems when structural issues remain. Assembly Budget Chairman Lou Greenwald (D-Camden) called an Aug. 5 hearing on the deficit, calling it "a big concern that needs to be addressed."

Christie today said such comments are hypocritical when Democrats are also pushing for him to sign bills that would cost more money, including a homebuyer tax credit program and restoring state funding for family planning centers. Lawmakers say they have found a way to pay for family planning.

"You can't have it both ways," the governor said, adding while he hasn't made a final decision on the bills, "I am very disinclined to do spending that isn't paid for."

Greenwald has said the tax credit will spur the economy and bring more money into the state, rather than cost money. He said the state needs to find ways to help businesses grow.