ICYMI: Governor Christie Reserves Certain Transitional Aid, Legislative Spending Under EO-209

Trenton, NJ– Governor Chris Christie has ordered certain spending items to be temporarily reserved under Executive Order No. 209 to maintain a fiscally responsible, balanced Fiscal Year 2017 State Budget.

EO-209 was issued yesterday in response to the Legislature’s inability to responsibly budget for the State’s existing health care costs or force the enactment of common sense, reasonable health benefit reforms. To address the Legislature’s irresponsible spending plan, the attached Executive Order immediately places tens of millions of dollars in budget appropriations in fiscal reserve, starting with the following:

• One-half or approximately $53.68 million of the Fiscal Year 2017 Transitional Aid account, from which 13 municipalities received funds in Fiscal Year 2016; and
• Legislative Democrat extra spending, equaling $45.38 million.

"Failure to exercise any of these powers risks the State potentially lacking resources necessary to maintain a responsible fund balance while providing for essential State services and basic operations of State government for Fiscal Year 2017, potentially causing immediate adverse impacts on the residents of the State,” Governor Christie said.“The legislative majority wants to thoughtlessly spend down the State's surplus by $160 million. Worse, however, is their shameless inclusion of a $250 million phantom savings in public employee and retiree health care costs, which I called for in February but the Legislature did absolutely nothing to embrace, negotiate or achieve. Those ‘savings’ were penciled in on paper but completely nonexistent.”

Funds placed in reserve will likely remain in reserve and unexpended, until public employee health care savings are enacted.

Transitional Aid Awards in FY16

Camden $12M
Patterson $25.25M
Trenton $20M
Union City $17.8M
Atlantic City School District $20M
Asbury Park $1.5M
Atlantic City Muni $13M
Harrison $1.6M
Kearny $1.5M
Newark $10M
Nutley $5.5M
Penns Grove $280K
Salem $300K
Total $128.73M

 

Here is a list of Legislative budget adds to be placed in reserve:

Agency Program/Item $ (000s)
Children and Families Court Appointed Special Advocates 850
Children and Families Domestic Violence Prevention Services 2,240
Children and Families Sexual Violence Prevention and Intervention Services 2,800
Children and Families Child Advocacy Center Competitive Grant Program 4,800
Children and Families Latino Action Network Hispanic Women's Resource Center 250
Children and Families Project SARAH 100
Community Affairs NJ Re-Entry Corporation 2,500
Community Affairs Volunteers of America Re-Entry 2,500
Community Affairs Essex County First Tee Program 3,000
Community Affairs Boys and Girls Clubs of NJ 145
Community Affairs Camden County Housing First 250
Corrections Essex County Recidivism Pilot 1,000
EDA New Jersey Innovation Institute 4,000
Education Advanced Placement Exam Fee Waiver 435
Education County Vocational School District Partnership Grant Program 1,000
Education Nonpublic Security 7,500
Education Nonpublic Technology 951
Education Nonpublic Nursing 549
Education Cumberland County Vocational Education 503
Health NJ State Commission on Cancer Research 1,000
Health Statewide Trauma Registry 750
Health Cancer Institute of NJ - University Hospital Cancer Center Services 1,000
Health Adler Aphasia Center 200
Health Reed Academy - Autism Services Pilot Program 500
Human Services Holocaust Survivor Assistance Program, Samost Jewish Family and Children's Serv Southern NJ 400
Human Services NJ Elder Index 200
Human Services Personal Care Rate Increase 137
Labor Vocational Rehabilitation Services 5,000
Labor New Jersey Innovation Institute 1,000
Legislature District Office Support Services 500
Legislature Assembly 1,000
Legislature Senate 1,000
Military and Veteran Affairs Vietnam Veterans War Memorial 250
State Supplementary Education Grants (EOF) 1,425
State Opportunity Program Grants 2,140
State New Facility - School of Business, Rutgers 1,000
State Center for Research and Education Advanced Transportation Engineering (Rowan University) 2,000
State Operating Cost for New Academic Buildings Rowan University-Rutgers Camden Board of Gov 500
State Small Business Development Centers 250
  Total 55,625

 

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Press Contact:
Brian Murray
609-777-2600

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