Ciattarelli: The Governor is Wrong on Borrowing

Jack Ciattarelli

By Jack Ciattarelli

Democratic Legislative leadership has announced they are backing Governor Phil Murphy’s plan to borrow billions to balance New Jersey’s state budget. 

The Governor and Democrats are wrong for advancing this unprecedented scheme. There is no immediate need to borrow. The state’s Fiscal Year 2020, which ends September 30th, is balanced and includes a $500+ million surplus. Contrary to what the Governor claims, we are not running out of cash nor are we in danger of not being able to pay our bills. Why are we rushing to incur tremendous debt? 

As for FY ‘21, the prudent thing to do is to debate the Governor’s revised spending priorities and revenue estimates, which he must deliver to the Legislature by August 25. Then and only then should he make his case for how to balance the budget moving forward.

In making his case, the Governor needs stop with the fearmongering. His original claim of a $30 billion two-year budget hole was followed by a claim of $20 billion. By May, he claimed it was $10 billion. 

The real problem is that this Governor refuses to do his job and consistently avoids making the hard decisions. He prefers the easy route; namely, a blank check and unprecedented borrowing capacity that will cost taxpayers millions of dollars in unnecessary interest payments. 

You don’t borrow from a bank to pay your electric bill and other household expenses. Likewise, the state should not borrow to pay its operating expenses.

The bottom line is this: there is no immediate need to borrow and we’re dealing with the unknown until the Governor presents his revised FY ’21 budget. 

This much is known: a previous state Supreme Court decision (Lance vs. McGreevey) said long-term debt cannot be used to balance any budget. 

Using long-term debt as the Governor is trying to is terrible fiscal policy. Issuing long-term debt without voter approval is an egregious scheme that violates taxpayers. And incurring long-term debt to balance our state budget is an unconstitutional act that demands a Supreme Court challenge, which is exactly what the Governor is going to get.

Jack Ciattarelli, a certified public accountant (inactive), two-time business owner and a former local and state elected official, is a declared candidate for governor.

Posted: July 12th, 2020 | Author: | Filed under: 2021 NJ Gubernatorial race, Jack Ciattarelli, New Jersey, Opinion | Tags: , , , , , | 12 Comments »

12 Comments on “Ciattarelli: The Governor is Wrong on Borrowing”

  1. Until said at 11:35 pm on July 13th, 2020:

    Jack is distributing water bottles to the heros on the DMV line, I for one, refuse to endorse his candidacy.

  2. Bob barrett said at 9:17 am on July 14th, 2020:

    I agree that borrowing just deepens our Debt which will drive up res estate taxes . Cancelling the homestead rebates increased the taxes to seniors again. But, I would like to know your Recommendations for the lack of revenues.

  3. Dan Daman said at 9:20 am on July 14th, 2020:

    For 2 months, all the State Parks were closed . . . and for 3 months all the DMV’s were closed. Did Murphy try to save a few $$million for NJ’s taxpayers by furloughing those employees? Of course not.

    Because Murphy doesn’t have the guts to cut government spending . . . because the core of Murphy’s political base are government workers and teachers and they control him.

  4. Ann Indahl said at 9:22 am on July 14th, 2020:

    NJ is also called NO Jersey….please turn this State around❤️

  5. John Renk said at 9:26 am on July 14th, 2020:

    Democrats have to realize tax payers are not a sponge to squeeze every time they run out of money. They must do without stop the free stuff (they use to buy votes) . People must be watching feel good news , any sane person voting to raise taxes has to be on the cash cow . I need the money just to maintain my own home , Does government know money does not grow on a tree? Vote out all democrats they are useless .

  6. Jimbuoy said at 9:39 am on July 14th, 2020:

    Artile comment:
    Ferret Face & the state of NJ have to stop spending money they don’t have and learn to operate within their means.

    “Until” comment:
    What a great response you wrote that didn’t even mention anything about the article. You must be Ferret Face’s lap dog and a recipient of his borrowed taxpayers money.

    #1-No one cares who you vote or don’t vote for.
    #2-No one cares aout your rants, unless you at least address the artile with some meaningful information or comments.
    #3-This is way nothing gets none in NJ and the taxpayer are always left with picking up the politisians bills.
    #4- See how its done, I addressed the article and your comment in that order.

  7. Jo said at 10:13 am on July 14th, 2020:

    Please stop this knucklehead!

  8. Shaun said at 10:42 am on July 14th, 2020:

    Show me your budget cuts to balance the budget and I will believe your version. No one offs or futuristic gimmicks, just budget curs!

  9. Barbara Peabody said at 10:52 am on July 14th, 2020:

    The US is in the middle of a pandemic. NJ numbers are down due to the leadership of Governor Murphy and those of us who are masking and distancing.
    Businesses closed to save lives. State revenue has plummeted. The Republican leadership nationally does not want to help.

    What ideas do you propose, Mr. Ciattarelli? How would you have handled the pandemic? What decisions would you have made to save lives?

    What would you cut to balance the state budget? What is not important to you?
    You do not address any of this.

    Give me some real specifics, Mr. Ciattarelli. Your bluster is not convincing.

  10. Russ Bennett said at 2:02 pm on July 14th, 2020:

    You said: “The real problem is that this Governor refuses to do his job and consistently avoids making the hard decisions. He prefers the easy route; namely, a blank check and unprecedented borrowing capacity that will cost taxpayers millions of dollars in unnecessary interest payments. ”

    Why don’t you say what you are going to do. I think you are right about one thing. Now one of the former governors, the present governor, and YOU. Would rather cut services, screw the public workers and their pensions, without having the guts what you need to do, RAISE TAXES. So Mister Candidate ‘WHAT ARE YOU GOING TO DO TO FIX THE BUDGET. Right now you don’t have my support, so see if you can change my mind.

  11. Diane Jones said at 3:00 pm on July 14th, 2020:

    Please let us know HOW we will meet any budget after this pandemic… Our property taxes are already too high. Seniors just make it and now w/o senior freeze or property rebates, many may NOT make it. Our income is frozen from the time we retire, we don’t get raises like anyone who works may. We won’t get a cola this year but when we do; it gets taken away with Medicare rising. so in fact, we get a raise to pay Medicare. Now we had to buy PPEs, our governor had to bid on them. HOW are we going to meet the budget????

  12. Joyce G said at 5:53 pm on July 14th, 2020:

    Our government MUST REDUCE SPENDING! Spending is out of control. People are leaving by the droves to avoid NJ taxation. Soon the only people left in NJ will be those collecting government assistance – and no one will be left to put $ into the government assistance pot!

    Wise up Murphy and your democratic spending team…