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Governor Christie's Budget State of New Jersey The Governor’s FY 2016 Budget Budget Summary Chris Christie, Governor Kim Guadagno, Lt. Governor Andrew P. Sidamon-Eristoff State Treasurer Charlene M. Holzbaur Robert L. Peden Jacki L. Stevens Director Deputy Director Associate Director Mary E. Byrne Brian E. Francz Assistant Director Assistant Director Office of Management and Budget February 24, 2015 This document is available via the Internet at http://www.state.nj.us/treasury/omb State of New Jersey OFFICE OF THE GOVERNOR P.O. BOX 001 TRENTON, NJ 08625-001 CHRIS CHRISTIE KIM GUADAGNO Governor Lt. Governor FISCAL YEAR 2016 BUDGET OF CHRIS CHRISTIE GOVERNOR OF NEW JERSEY TRANSMITTED TO THE SECOND ANNUAL SESSION OF THE TWO HUNDRED SIXTEENTH LEGISLATURE Mr. President, Mr. Speaker, Members of the Legislature: In accordance with the provisions of C.52:27B-20, I hereby submit my budget recommendations for fiscal year 2015 - 2016. This document provides a summary of my recommendations, and outlines the key aspects of my overall financial plan for the governmental services to be provided by the State to the citizens of New Jersey. The budget detail, including information on specific line items of appropriations, will be submitted to the Legislature separately. Respectfully submitted, CHRIS CHRISTIE Governor of New Jersey Attest: Christopher S. Porrino Chief Counsel to the Governor February 24, 2015 New Jersey Is an Equal Opportunity Employer • Printed on Recycled and Recyclable Paper TABLE OF STATE OF NEW JERSEY FY 2016 BUDGET SUMMARY CONTENTS Tough Choices Lead to the Right Ones A RECORD OF FISCAL STEWARDSHIP AND RESTRAINT ....................................................................... 2 The Ongoing Process of Reform ............................................................................................................. 2 Pensions and Health Benefits Reform .............................................................................................. 2 K through 12 Education .................................................................................................................... 2 Drug Use and Substance Use Disorder Treatment........................................................................... 3 Community-Based Care ................................................................................................................... 3 NJ FamilyCare Expansion ................................................................................................................ 4 Higher Education .............................................................................................................................. 4 Investing in a Competitive New Jersey ................................................................................................... 4 Tax Relief ......................................................................................................................................... 5 Economic Opportunity Act of 2013 ................................................................................................... 5 THE FISCAL YEAR 2016 BUDGET .............................................................................................................. 6 The State Budget at a Glance ................................................................................................................. 6 Protecting Core Priorities ........................................................................................................................ 9 Employee Benefits ............................................................................................................................ 9 Pre-K - 12 Education ...................................................................................................................... 12 Higher Education ............................................................................................................................ 14 Health and Human Services ........................................................................................................... 15 Property Tax Relief ......................................................................................................................... 21 Local Government .......................................................................................................................... 22 Public Safety and Criminal Justice ................................................................................................. 23 Environmental Protection ................................................................................................................ 24 Transportation ................................................................................................................................ 26 Economic Development .................................................................................................................. 26 Information Technology .................................................................................................................. 27 NEW JERSEY ECONOMIC OUTLOOK ...................................................................................................... 28 The National Economic Outlook ............................................................................................................ 30 Fiscal 2016 Revenues ........................................................................................................................... 32 Gross Income Tax .......................................................................................................................... 33 Sales Tax........................................................................................................................................ 34 Corporation Business Tax .............................................................................................................. 35 APPENDIX …………………………………………………………………………………………………………....36 1 SECTION I A RECORD OF FISCAL STEWARDSHIP AND RESTRAINT A RECORD OF FISCAL STEWARDSHIP AND RESTRAINT When Governor Christie took the oath of office at the beginning of 2010, New Jersey was in dire financial straits. The State faced a looming deficit of $2.2 billion in the fiscal year 2010 budget, with less than half of the budget year remaining. Governor Christie made the hard choices and took the necessary action to bring the budget back into balance without raising taxes or compromising New Jersey’s commitment to provide for its most vulnerable citizens. From that first crisis through to this fiscal 2016 budget recommendation, Governor Christie’s record of affirmative fiscal stewardship has emphasized spending restraint, reform and renewal rather than a return to the shirking of responsibilities and unsustainable tax and spend practices that had brought New Jersey to the brink of disaster. Today, the process of renewal is accelerating and New Jersey state government is smaller, smarter and stronger. The Ongoing Process of Reform From the beginning of his tenure, Governor Christie has fought successfully for critical bipartisan governmental reforms that control costs, improve services and modernize New Jersey state government. Pensions and Health Benefits Reform For decades prior to Governor Christie’s taking office, the State ignored its responsibility to fund its employees’ pensions adequately, resulting in a crushing unfunded liability that threatened the income security of hundreds of thousands of current and future retirees. In September 2010, Governor Christie stepped up to the challenge and advanced an ambitious reform plan to return the State’s pensions and health benefits system to a sound financial footing over time. After months of difficult negotiation and compromise, Governor Christie signed landmark, bipartisan reforms in June of 2011, saving taxpayers over $120 billion over the next 30 years. K through 12 Education Governor Christie has fought for and won sweeping, bipartisan reforms and historic funding to give every New Jersey child the education he or she deserves. School Aid – Overall, this budget commits spending nearly $12.8 billion on education or $811 million more than in fiscal 2015. The Governor’s proposed increase of $4.6 million brings total aid to schools to over $9 billion, making the fifth year in a row of setting a historic high. Aid to schools in the fiscal 2016 budget is more than $1 billion greater than it was just five years ago. Tenure Reform – Marking the first extensive reform of New Jersey’s tenure law in over 100 years, Governor Christie signed into law the Teacher Effectiveness and Accountability for the Children of New Jersey (TEACHNJ) Act, a sweeping, bipartisan overhaul of the oldest tenure law in the nation. Charters and School Choice - Governor Christie has improved the authorizing and application process, encouraged more charter school applicants, created greater charter flexibility with administration and finances, and provided greater school choice by implementing a law that allows 2 A RECORD OF FISCAL STEWARDSHIP AND RESTRAINT SECTION I private schools to convert into charters. The Christie Administration has increased the overall number of charter schools in New Jersey to 96, while relentlessly focusing on quality and holding all schools accountable for results by closing 15 low-performing charter schools. In addition, the Interdistrict Public School Program is increasing educational opportunities for students and their families by providing students with the option of attending a public school
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