Bucco & O'Scanlon to Introduce a Bill to Restore School Aid Following Murphy's Funding Cuts

Senator Declan O’Scanlon (R-13) released the following statement in response to reports that the Governor’s office directed departments to reduce spending by 5%:

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“Wait, you mean Republicans were right in our dire budgetary predictions EVERY YEAR of this administration’s kicking the can down the road?!? Well what do you know! The looming fiscal cliff is a reality that many Republicans, like myself, saw coming because of Governor Murphy’s wild seven-year-long spending binge, as well as their failure to enact responsible and essential cost-saving reforms” said Sen. O’Scanlon. “If the Governor is serious about righting the ship, he can start by embracing moderate restraints and clawing back hundreds of millions of dollars in unspent balances from hundreds of frivolous pork items that were jammed in the budget over the past three years. When he starts with that low-hanging fruit, people might take his claims of frugality seriously.”

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For years Senate Republicans warned Governor Murphy and Trenton Democrats about impending fiscal imbalances while proposing constructive ideas to get ahead of these problems.  

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“Cutting the cost of bureaucracy is a good first step, but if the Governor truly wants to avoid a disastrous fiscal cliff and protect New Jersey taxpayers, he’ll listen to Republicans’ cost-saving measures that have gone long ignored in previous budget cycles,” concluded Sen. O’Scanlon.

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To speak with Senator O’Scanlon, contact Chris Sivel, SRO Deputy Director of Communications at csivel@njleg.org.

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Senator Declan O’Scanlon (R-13) announced that he is exploring legislation to hold school districts accountable for misusing public tax dollars. The legislative initiative follows reports that Hillside School District hired a federally convicted felon for an $80,000 no-show teaching job while still in prison.

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“Hats off to Hillside School District for their progressive work-from-prison policy! Apparently, nothing says educational excellence like using public tax dollars to hire a prisoner for a no-show gig,” said Sen. O’Scanlon. “If basic ethics aren’t enough to protect taxpayers from funding this kind of BS, then it’s clear we need bipartisan legislation to step in and set logical boundaries – or maybe just defund their state aid altogether.”

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Hillside School District currently receives $38 million in state aid, which makes up more than 50% of their budget.

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Senator O’Scanlon also blasted the Newark School District, highlighting the absurd competition between the neighboring districts in their gross misuse of tax dollars.

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“If wasting taxpayer dollars was a contest, Newark is certainly giving Hillside a run for their money,” Sen. O’Scanlon continued. “When some schools must choose between funding courtesy bussing or after-school programs, it’s outrageous that Newark is abusing taxpayers’ dollars by sending staff on lavish trips to Hawaii and Puerto Rico, and hosting $50,000 parties, all while student academic performance suffers at home.”

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To speak with Sen. O’Scanlon, contact Chris Sivel, SRO Deputy Communications Director at csivel@njleg.org.

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In a letter to the Lt. Governor and Secretary of State, Republican Budget Members requested that the $24 million of State taxpayer funds appropriated though the Department of State in FY 2022 for the Centre Pompidou X museum project is redirected to a more responsible purpose.

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The full letter is below. Click here to view the PDF.

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Dear Lt Governor/Secretary of State Way;

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We are writing to request that you immediately take steps to ensure the $24 million of State taxpayer funds appropriated though the Department of State in FY 2022 for the Centre Pompidou X museum project is redirected to a more responsible purpose.  The Department of State executed a grant agreement with the Jersey City Redevelopment Authority shortly after the appropriation was enacted which unwisely advanced $6 million of those funds for the project.  The advanced funds, as well as the $18 million balance in Department of State accounts, remains unspent.  We believe it would be better used almost anywhere else.

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This $24 million is in addition to the $34 million appropriated to the Economic Development Authority (EDA) that they froze last week because of questions about the project’s viability.  They warned that the project appears deficit-laden and would require a $19 million subsidy in perpetuity.  The City’s finances are well-known to be a grossly mismanaged mess.  They are already having trouble paying their bills.  Letting them dig a deeper hole will ultimately trigger bankruptcy or a State bailout.  Neither is acceptable.    

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Jersey City has caused this project to become a circus of excess and waste with little concern for how the bills will be paid.   Ever since the City bought the property in 2018 where the French museum will supposedly be built, there’s been a consultant feeding frenzy. Six years later, there is little to show for it other than City promises to pay a French corporation $30 million for naming rights and other services, and another approximately $10 million in contracts with two dozen or more other consultants.  Most of them were selected outside of traditional bidding requirements.  Some were the highest bidders and others duplicate services.  

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Specifically, we respectfully request that you instruct the Department of State to immediately demand a return of the $6 million advance and place the balance in a reserve so it can lapse to the General fund and be redirected.  The Department of State’s budget hearing before the Senate Budget and Appropriations Committee was canceled, and since it appears it will not be rescheduled, we respectfully request that you respond to this request in writing no later than the last Budget Hearing on May 14.  

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Sincerely,

Senator Declan O’Scanlon, Jr.

Senator Michael Testa, Jr.

Senator Doug Steinhardt

Senator Carmen F. Amato, Jr.

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Senators Reignite Calls For Bipartisanship to Restore Aid and Fix the Broken School Funding Formula.

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Senate Republican Leader Anthony M. Bucco (R-25) and Senate Republican Budget Officer Declan O'Scanlon (R-13) announced their intention to introduce legislation that would restore over $200 million in school aid cuts proposed by the Murphy administration.

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"It is extremely concerning that while Governor Murphy proposes to spend a record amount of money on education, certain school districts are on the hook for major reductions in state aid," said Sen. Bucco. "Schools that find themselves on the losing end of New Jersey's broken school funding formula are struggling to make ends meet. Restoring these cuts are a necessary step towards ensuring that educators have the resources to combat learning loss and provide children with the education they so rightfully deserve."

"Republicans have proposed amending the broken school funding formula for years, but unfortunately the administration ignored us — and worse, educators. Unnecessarily large cuts are digging into certain school districts and risk taking away valuable opportunities for young children," said Sen. O'Scanlon. "While certain schools have struggled to survive, the Murphy administration has wasted tens of millions of dollars on a French Arts Museum and other unexplained pork projects. This legislation would repurpose unexpended appropriations made in prior fiscal years to responsibly restore the proposed school aid cuts to protect every child’s education.”  

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The bill would amend the annual appropriations act to fully restore proposed school funding cuts for certain school districts in FY 2025. School districts that received supplemental "hold harmless" aid last year to ameliorate S-2 cuts would receive that amount again.

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You can view the bill, as well as the full list of amended appropriations online (Click Here for PDF).

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To speak with Sen. Bucco and/or Sen. O'Scanlon, please contact Chris Sivel, SRO Deputy Director of Communications at csivel@njleg.org.

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On Friday afternoon, more than two months after the law required legislators' requests for budget funding to be released to the public, Democrats released requests that all have this disclaimer stamped at the top: "The Budget Bill includes this Resolution, either as submitted or in a modified form." It's not clear how original budget requests were sanitized, but they have almost all been modified to remove required explanations about how the money will be spent.

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Senate Republicans released all of their original and unmodified budget resolutions more than two months ago - before the budget was adopted, as required by law. The Republican members of the Senate Budget and Appropriations Committee are once again calling on Democrats to release all budget resolutions with explanations about how the money will be spent, just as they were submitted - so it is clear to the public who really requested funding and their explanations of how it would be spent:

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"This is outrageous, but typical and incredibly arrogant behavior by Democrats running Trenton," said Senator Declan O'Scanlon (R-13). "Republicans made our resolutions public, prior to passage of the budget as required by Senate rules. All of the resolutions that we advocated for clearly noted who advocated for it and the narratives outlining why the money was needed. Democrats, in typical fashion, waited until no one was paying attention and released this sanitized garbage on the eve of a major holiday weekend. The people of New Jersey deserve a truly transparent government and they're not getting that from Democrats in Trenton."

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"Two months ago, Democrats passed a budget loaded up with pet pork in North Jersey, like another $24 million for an excessive and wasteful French arts museum in Jersey City and money for private pool improvements in Deal - one of the richest towns in the State," said Senator Michael Testa (R-1). "After much pressure, Democrats released some legislators' requests for taxpayer money, but they sanitized those requests of any explanation about how taxpayer funds will be spent. There is still no disclosure about who shoveled money into Deal and to dozens of other projects. Meanwhile, clearly articulated requests for flood protection, historic restoration, and other modest projects in South Jersey that weren't funded were not released by Democrats - apparently because Democrats hate South Jersey almost as much as transparency and don't want you to know. Change is sorely needed."

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"Whether its's keeping parents uninformed about what is happening in schools or how your money is being spent, there is a common thread in Trenton - Democrats want you to be ill-informed. The press and public waited for two months to provide explanations about pork stuffed into the state budget at the last minute for pet projects, government administration buildings, and more wasteful spending," said Senator Doug Steinhardt (R-23). "Though the documents released Friday claim to bring transparency to the process, Democrats sanitized any explanations about how money will be spent. Meanwhile, requests for assistance that were denied for rural internet access, fire safety needs, and flood protection went ignored and were withheld. Democrats hoped you wouldn't notice they put wasteful pet projects ahead of the needs of New Jerseyans who require rural internet service and protection from fire and floods."

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"Democrats released some legislators' requests known as 'budget resolutions' on the Friday before Labor day which they claim brings transparency for the $1 billion of pork added to the budget at the last minute," said Senator Steve Oroho (R-24). "What they released, however, was whitewashed of any explanation of how the money will be spent. Democrats in Trenton are showing that they fear real transparency and will go to great lengths to hide how they are really spending the past five years of tax increases that tag on billions of dollars to New Jerseyan's energy bills, wage withholdings, UBER rides, and even hospital stays."

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Senator Declan O'Scanlon issued the following statement slamming the Paterson School Board's waste of State aid after the board voted to approve excessive travel expenses for a trip to New Orleans. The senator called for the Department of Education (DOE) to use its authority to deduct waste from any future grants and reiterated the need for committee hearings to reform the broken school aid funding formula.

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"Paterson schools' misuse of taxpayer money follows a pattern of self-indulgent travel by school board members to extravagant places like Las Vegas, Honolulu, and now New Orleans. This is one more reminder that excessive State aid increases for selected districts doesn't necessarily reach children while aid cuts for other districts are devastating everywhere else. It is way past time for the Legislature to reform the broken school aid formula and disincentivize this sort of garbage.

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How are students benefiting from school officials taking luxurious trips around the country? Rather than taking expensive trips, the Paterson and Newark school boards should be focused on helping students recover from learning loss. Until then, the DOE needs to use its discretionary authority and deduct any disgusting waste like this from future grants."

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In 2022, it was reported that Newark school officials approved the use of taxpayer dollars to send their members to San Diego, Miami, Puerto Rico, and Honolulu.

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Today, in a story published by POLITCO, the New Jersey Department of the Treasury admitted that padding a bloated budget with $160 million was more important than saving three times that amount for a critical fund (TTF) that improves roads and transportation improvements for New Jerseyans.

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The formal memorandum from the Office of Legislative Services points out that reducing the Transportation Trust Fund (TTF) debt issuance in November by $500M would have saved three times what was saved by the recent $500M Murphy/Muoio defeasance. The smaller savings under defeasance was to the budget, while the much larger savings that could have been achieved for TTF would simply have saved money for TTF.

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Treasury doesn’t deny the math and instead admits they wanted savings for the bloated budget.

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Comment from Treasury: “When looking at defeasance Treasury’s goal has consistently been to maximize the benefit to the general fund.”

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Below are comments from Senate Republican Leader Anthony Bucco (R-25) and Republican members of the Senate Budget Committee.

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Comment from Sen. Bucco: “As we have shown in the past, Republicans remain anxious to provide alternative solutions to address the fiscal issues facing our State. We have proven that if our ideas are seriously considered by the Democrats, taxpayers will be better off for it. This analysis confirms that one party Democrat rule is simply not working.”

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Comment from Senate Republican Budget Members: “The Murphy Administration chose to save $160 million for a bloated State budget instead of three times as much that could have gone towards transportation projects without the tax increases Murphy is secretly advocating for behind closed doors.  With $1.5 billion of debt avoidance funds left, it’s our hope that Murphy will instead use it for transportation projects without new borrowing and the taxes he wants.”

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To speak with Sen. Bucco or members of the Budget Committee, contact Kyle Fischer, SRO communications director, at kfischer@njleg.org.

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Today, the Republican Budget Committee members, Senators Declan O’Scanlon (R-13), Michael Testa (R-1), Doug Steinhardt (R-23), and Carmen Amato (R-9) issued the following statement reacting to Governor Murphy’s proposed tax and spending increases:

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“The Governor's recent budget address proved one thing: this is the administration of missed opportunities. The governor abandoned his pledge for no new taxes in yet another record-high budget for New Jersey. New taxes funding the budget and other programs will cost families an additional $1,000 in taxes and fees – that is the antithesis of affordability.

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Republicans have repeatedly proposed ways to make spending proposals more moderate and fair while providing tax relief, but they have fallen on deaf ears.

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The proposed budget can be fixed IF Republicans have a seat at the table. Our ideas need to be taken seriously because Murphy and fellow Trenton Democrats’ strong-headed, one-party approach and continued neglect of sound plans for budget reform is doing a disservice to the 9.5 million New Jerseyans who call the Garden State home.

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Governor Murphy’s budget is nothing more than fiscal malfeasance that leaves families, seniors, young people, and our business community worse off than ever before.”

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Governor Murphy is advancing the following taxes in the next year:

• A tax on employers
• Increased taxes on HMO health insurance
• A new truck tax
• Another toll increase
• A NJ Transit fare increase
• Increased taxes and fees on hunters
• Higher income tax rates from inflation and bracket creep, and
• Dramatically increased employee wage taxes in January 2025.

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Additionally, 16 school districts will receive massive increases in aid, while hundreds more have their aid cut or get increases that fail to keep up with inflation. Furthermore, general operating assistance for every municipal government is being cut.

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View the Senate Republican 2023 proposal here.

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View the Senate Republican 2024 proposal here.

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To speak with Republican members of the Budget Committee, please contact Kyle Fischer, SRO Communications Director at kfischer@njleg.org.

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Senate Republican Budget Officer Declan O'Scanlon (R-13) slammed Governor Murphy today after the Department of Education revealed significant funding cuts for more than 100 schools for fiscal year 2025.

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"While I’m happy that most school districts in my legislative district aren’t severely impacted by these cuts this year, they continue to suffer the impacts of severe cuts over the last few years. Also, my concern for NJ school children doesn’t end at my district's border. Right next door in District 11 many school districts will be crushed by these cuts. It speaks volumes about this administration's priorities that Governor Murphy is once again abandoning these children by slashing aid for more than 100 school districts. There is undoubtedly a plethora of leftover pork from the last budget session that could be better spent safeguarding teachers and students from unnecessary budget cuts," said Sen. O'Scanlon. "Republicans have said for years that the school funding formula was broken, but Governor Murphy has proven that he either doesn’t know how it works, or worse, he doesn’t care."

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Governor Murphy said during his most recent budget address that, "fully funding public schools will benefit every New Jerseyan." Tell that to the kids in districts that have cut art, music, and sports. Tell that to districts having to fire teachers, increase class sizes and raise property taxes due to these cuts. You can view the full list of schools experiencing funding cuts online.

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"It is glaringly hypocritical for Governor Murphy to claim that his budget makes New Jersey stronger and fairer while cutting funding for schools. How does that benefit anyone in New Jersey, let alone kids?” Sen. O'Scanlon questioned. "While some districts aren’t hit as hard as others, the volatility of S2 has left too many school districts without sufficient resources to maintain vital programs and extracurricular activities. Yet, Democrats always find enough last-minute funding for frivolous pet projects like cricket fields and French museums — it's absurd. These cuts are twice as bad for some districts who are additionally losing a combined $103 million in aid provided to ameliorate last year’s losses during the election. It’s devastating for these school districts and the thousands of students they educate."  

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To speak with Sen. O'Scanlon about the schools receiving funding cuts by contacting Chris Sivel, SRO Deputy Director of Communications at csivel@njleg.org.

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Members of the Senate Republican Budget Committee called on Governor Murphy to embrace their long-ignored constructive ideas that would help address the affordability crisis in New Jersey. Senators Declan O’Scanlon (R-13), Michael Testa (R-1), Doug Steinhardt (R-23), and Carmen Amato (R-9) issued the following statement:

If the governor truly cares about affordability, his February 27th budget proposal will reverse spending excesses and financial missteps and finally embrace constructive Republican budget proposals that have fallen on deaf ears for the past several years.  His embrace of Republican restraints and reforms will be more important than ever as this year revenues are beginning to decline or stagnate, and as federal COVID block grants dry up, NJ Transit faces growing deficits and the State’s Transportation Trust Fund needs to be reauthorized.  The State’s longer-term budget imbalances have been warned about for years with no plan to address them, and a bipartisan group of fiscal experts at Rowan University recently sounded the alarm again when they pointed out that the current year budget spent $1.55 billion more than Treasury anticipated in recurring revenues and projected the imbalance will increase $3.2 billion to $7.1 billion each budget year from FY25 to FY28 absent spending restraints and reforms.

The time for restraints and reforms is long overdue.

• The following links 1.) https://www.senatenj.com/index.php/oroho/senate-republicans-propose-fy-2024-budget-plan-with-6-billion-of-new-tax-relief-more-debt-reduction-spending-moderation-greater-transparency/60606 AND 2.) https://www.senatenj.com/index.php/oroho/senate-republicans-propose-8-billion-of-new-tax-relief-bolstering-surplus-doubling-debt-repayment-increasing-oversight-in-budget-plan/57385 bring you to comprehensive Republican budget proposals offered in each the last two budget years.  They offered constructive proposals to better manage our State budget, with a greater focus on tax relief, spending restraints, and reforms. Almost all the constructive suggestions for tax relief and restraint and reforms were ignored.  They included:
• Stopping new tax/fee increases including income tax increases from bracket creep, employee wage tax increases, and highway toll increases.
• Reducing taxes and providing tax relief now – not in 2027 like the STAY NJ plan which might never get implemented at all.
• Changing school funding to moderate certain excesses and ensure all districts’ aid can be increased along with inflation.  

• The failure to embrace past recommendations is especially frustrating because there are obvious and glaring excesses where a select few school districts have received enormous increases in aid -- with percentage increases as high as 40% in a single year and hundreds of millions of dollars over time – despite unchecked spending abuses reported on by multiple media outlets.  Meanwhile, there are schools that have experienced unforeseeable and erratic decreases in aid due to obvious flaws in the funding formula that have been left uncorrected.  CRITICALLY, SCHOOLS ENACT BUDGETS THIS SPRING BASED ON AID PROPOSED BY THE GOVERNOR.  IF THE GOVERNOR’S BUDGET PROPOSAL SLAVISHLY FOLLOWS THE BROKEN APPOACH UNDER A 7-YEAR-OLD LAW (S2), UNFAIR AND INADEQUATE DECREASES FOR A 7th STRAIGHT YEAR WILL DESTROY SOME SCHOOLS WITH NO RATIONAL PLACE LEFT TO CUT, AND DRIVE-UP PROPERTY TAXES FOR OTHER SCHOOLS.

• Stopping/controlling some of Governor Murphy’s unsustainable new spending programs.
• Reforming abuses in the pension system that were grandfathered in years ago to help pay for targeted cost-of-living adjustments for the oldest retirees with modest pensions and who have been most impacted by cost-of-living adjustment freezes for a long time.
• Controlling public health care costs by supporting public employee union proposals that will save money for employees AND taxpayers who share in premiums.
• Stopping wasteful and/or unprioritized spending of far more than $1 billion on hundreds of special “pork” projects including $58 million for a French Arts Museum in Jersey City; funding for a private pool in one of the richest communities in the State; funding for an artificial turf cricket field; and funding for a lacrosse club.        

• The following link, https://www.senatenj.com/CivicAlerts.aspx?AID=217, brings you to a more recent proposal by Republicans that would put the Transportation Trust Fund first in line to receive a substantial share of $1.5 billion in available Debt Reduction and Avoidance funds.
• Nonpartisan budget analysts agree that using these funds to pay cash for transportation projects -- instead of issuing expensive 30-year bonds -- will save three times as much money for taxpayers as the Administration’s use of the funds to retire shorter term, lower interest rate debt.
• The proposal will help head off tax increases the Governor is pushing to shore up the important program that funds critical transportation projects.  

The Governor’s budget address probably won’t even mention the tax and fee increases he has recently been implementing and proposing – as though they have nothing at all to do with State finances and aren’t making New Jersey more unaffordable.

• NJT fare increases and highway toll increases are regressive and moving full steam ahead.
• “Bracket creep” is causing more and more people to have higher income tax liabilities as inflation pulls them into higher income tax brackets. It’s regressive and will cause people to pay $500 million more in income tax payments.
• Regressive tax increases to reauthorize TTF are being pushed behind closed doors.
• Highly regressive employee wage taxes to fund UI and Family Leave will spike next January.

The much-touted “STAY NJ” program will still not be fully funded or operational in the budget and won’t be funded until the FY 2027 budget -- proposed after the governor leaves office.

• The Governor’s budget will likely contain a small, proposed increase for STAY NJ that will fund a fraction of the program’s costs.  But the funding will simply be kept by the State – being eroded by inflation -- for a promise to provide tax rebates to some people in FY 2027 – the year AFTER the Governor leaves office.  A commission that only recently started meeting is charged with identifying how to pay for STAY NJ – code for raising more taxes in the name of tax relief.

Past budget excesses that Republicans have repeatedly warned against will grow in the coming budget.

• Republicans past budget alternatives noted above identified specific spending excesses and new programs that should be halted or moderated. Many of these past excesses and new programs are growing -- even while the economy is dropping.
• Over the last several years, even as the overall funding for education climbed, it spiked dramatically in relatively few places by as much as 40% in a single year – while more than 100 other schools lost funding and 100 more received aid increases that didn’t keep up with inflation.
• New programs are expanding that force taxpayers to pay for: other people’s down payments on homes; legal bills and certain other benefits for foreign nationals fighting Biden deportations; cash welfare payments to convicted drug distributors.
• Gross overpayments to certain out-of-state health care institutions and other health care vendors though the State’s public employee health care programs continue to grow.
• As with last year’s budget process, the Governor’s budget proposal will again propose 50 or more special line items of special “pork” projects that he – and his cabinet members throughout the budget process -- will refuse to explain.  Last year, it was the first time a governor of either party actually inserted dozens and dozens of “pork” or “earmarks” or “Christmas tree items” in a proposed budget outside of any fair or open grant process.  It wasn’t normal and it was a staggering lack of transparency – and some of it, not all – was waste.
• He should refrain from the sorts of obviously wasteful “pork” or “earmarks” or “Christmas tree items” he proposed last year: a $12 million increase ($58 million in total… so far) for a French Arts Museum in Jersey City riddled with pay-to-play, no-bid vendors and $30 million wasted on a French Corporation to use their name on the museum and their consulting services; funding for a private pool in one of the richest communities in the State; and even funding for a lacrosse club.
• If the Governor is going to insert “pork” or “earmarks” or “Christmas tree items” he thinks make sense, he ought to provide an explanation and justification for them, something he has still not done to this day for items proposed last year.  Without that transparency, the proposals can’t be fairly assessed against the need to make New Jersey more affordable.

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The Republican members of the Senate Budget and Appropriations Committee released the following statement highlighting their concerns after hearing testimony today from OLS and State Treasurer Elizabeth Muoio:

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“When the Governor delivered his budget address, we had serious concerns that he was relying on savings that have yet to be determined, overly-optimistic revenue projections, and accounting gimmicks to disguise New Jersey’s financial problems,” Senate Republican Budget Officer Steven Oroho (R-24) said. “OLS can’t back up the administration’s revenue projections. Outmigration of income continues to be a major problem, equaling a loss of $3.5billion, according to the most recent yearly data. A new income tax will only make it worse. This is insanity. There would be no need for any tax increases at all if the governor would come to the table and enact our bipartisan Path to Progress reforms.”

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“How can we possibly ask New Jersey taxpayers to cope with half a billion dollars in new taxes? It’s unconscionable. There are bipartisan solutions on the table right now and refusing to consider commonsense options like pension and health benefit reform isn’t just irresponsible - it’s dangerous,” Senator Declan O’Scanlon (R-13) said. “The rhetoric alone is enough to drive people away. Families are leaving. Job creators are leaving and they aren’t all leaving for warmer weather - they’re leaving because they simply can’t afford to stay here, and this budget does nothing to address this problem.”

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“The Governor is asking us to take a huge leap of faith and trust that the revenue to fund his massive tax-and-spend budget will magically appear by April 15. That’s not a risk Republicans are willing to take. You can’t craft a budget with Monopoly money,” Senator Sam Thompson(R-12) said. “Children across New Jersey will still be victimized by unfair school funding cuts under this budget. Small business owners are once again being thrown under the bus. It’s time for the Governor to work with us to pass a budget that includes real fiscal reforms, instead of forcing hardworking New Jersey residents to pick up the tab.”

Senate Budget Committee Member Urges Gov to Compromise & Save NJ by Enacting Major Fiscal Reforms

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O'Scanlon responds to Gov's budget: We can’t tax our way out of this mess. (SenateNJ.com)

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"This budget won't lift up the middle class. It will leave generations of New Jersey residents with no hope for a prosperous future.

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"Even if the Governor’s rosy projections - of both revenue and savings - are accurate, we are still only a fraction of the way out of the hole we’re in.

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"We can't tax our way out of this mess. Without major reforms, it is a very real possibility that young public workers won't even have a pension by the time they retire.

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"I urge Governor Murphy to come to the table and hammer out a compromise with us. There is no other option," Senator Declan O'Scanlon (R-Monmouth) said.

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“The Governor’s incessant call for higher taxes is itself destructive, never mind whether the policy is enacted or not. Just last week, Warren Buffet warned business owners not to set up shop in states with unfunded pension liabilities, because they will eventually turn to job creators and high earners to fill government coffers. Governor Murphy’s rhetoric today will lead to a lower standard of living for our children. It’s devastating.

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"We’ve already seen the impact of Governor Murphy’s first income tax hike last year. Revenues are actually down, but he’s back again with the same failed solution. It’s like a line one would expect in a Dr. Seuss story: 'If some is bad, more must be better!' You don't need to take Republicans’ word for it. Even Governor Cuomo thinks a millionaire's tax drives people out of state.

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“The Governor’s statement that no one in the middle class will pay the increased income tax isn’t true. The middle class will suffer from reduced job creation, increased tax pressure and unrealized economic growth that simply won’t happen because we’ve driven our highest paying taxpayers and job creators out of the state. So yes, we will pay for the bad choices we make today.

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"Bottom line - all of the governor's ideas to save money are a drop in the bucket compared to pension and health benefit reform.

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"I won't stand by and let Governor Murphy continue to lead our state over the cliffs of fiscal insanity. I hope those who have advocated for a 'path to progress' will fight alongside me."

Senator Declan O’Scanlon (R-Monmouth) issued a statement today following news that the Governor has proposed taking $33 million from the State Firefighters Relief Fund designed to pay for burials of fallen firefighters and financial assistance for firefighters in need: "It is beyond confusing, and frankly shocking, that the Administration was not more proactive in reaching out to stakeholders after the comptroller's report on the status of the relief fund was released. Although the fund appears to be flush, it could quickly and easily be depleted if we were to mismanage any reallocation of funds and completely destroy the initial intent of the fund: to aid needy firefighters. "Talking to all stakeholders before committing to a funding or policy change is imperative to ensuring that you are not creating an even larger problem than the one you might be trying to solve. When I learned that the Governor had not engaged all entities in the firefighter community before he chose to take $33 million from the firefighters’ fund and move it into the budget I was baffled. I’ve had some frank, tough discussions with the firefighting community and other public workers about the critical fiscal issues we face. Those discussions are not always fun. But that makes it all the more imperative that the discussions are had, that the 1 / 2respect is shown, that input is genuinely sought and taken into account. "Firefighters are a critical component of our public safety and first responder community. These funds should be used for the betterment of our firefighters and perhaps improvement of the state of the sector itself, not to plug up completely unrelated budget holes. Since the issuance of the Comptroller’s report we have been reaching out to stakeholders to discuss the best way to expand access to, and manage the fund to fortify the firefighting community without destroying the fund’s primary intent."

Republicans serving on the Senate Budget & Appropriations Committee detailed proposed changes to Governor Phil Murphy's FY 2022 State Budget proposal in a letter (click here for PDF) to Senate President Stephen Sweeney and Budget Chairman Paul Sarlo.

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Republicans on the Senate Budget Committee detailed proposed changes to Governor Phil Murphy's FY 2022 State Budget proposal in a letter to Senate President Stephen Sweeney and Budget Chairman Paul Sarlo

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They recommended reforms that would protect New Jersey taxpayers, restore transparency to the appropriations process, and ensure billions in new federal relief funds are utilized effectively.

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"We're concerned that Governor Murphy's budget plan misses important opportunities to provide tax relief to workers and businesses that are struggling to recover from the pandemic," said Senator Steven Oroho (R-24), the Republican Budget Officer. "We offered detailed solutions to lower income taxes for telecommuters and prevent an avoidable payroll tax increase on small businesses, all while increasing state revenues. It's a win-win that the Murphy administration would be wise to accept."

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"Governor Murphy's budget proposal is heavily dependent on borrowed and surplus funds that resulted from his failure to forecast revenues transparently or honestly during the pandemic," said Senator Sam Thompson (R-12). "We believe the governor's proposed budget is fundamentally broken and structurally unbalanced. We've proposed sweeping changes to fix the current budget and protect New Jerseyans from massive tax increases that would otherwise occur in future years."

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"The Murphy administration squandered more than $2 billion in federal CARES Act funds while one-third of our small businesses went under and more than two-million New Jerseyans we resent into his broken unemployment system," said Senator Declan O'Scanlon (R-13). "As the Garden State starts to recover, it's clear Governor Murphy can't be trusted with the unilateral authority to spend approximately $6.5 billion in federal relief funds recently sent to New Jersey. We've proposed a comprehensive plan to employ the new federal funds effectively, restore legislative oversight, and seek public input through an open and transparent hearing process."

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"Governor Murphy has been dishonest about the State's finances and he continues to demonstrate why he can't be trusted with our money or anything else," said Senator Michael Testa (R-1). "During budget hearings this spring, we learned that the governor's revenue projections were grossly inaccurate, billions in debt was unnecessary, and important financial information wasn't provided to legislators in a timely fashion. While Governor Murphy has obfuscated repeatedly to funnel billions in debt, surplus, and federal funds into the next budget to boost his reelection campaign, we think he should show a little concern for what happens to New Jersey taxpayers after Election Day.”

Senate Republicans said Governor Phil Murphy’s FY 2024 budget proposal is a massive increase in spending, doesn't provide inflation relief or transparency, and continues harmful cuts to hundreds of school districts.

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Senate Republicans commented on Gov. Phil Murphy’s FY 2024 budget proposal saying it's a massive increase in spending, doesn't provide inflation relief or transparency, and continues harmful cuts to hundreds of school districts.

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Included below are comments from Senate Republicans:

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-Massive spending Increases: “Gov. Murphy's budget proposal for next year is 5%larger than this year’s budget, and it’s 50% bigger than the prior administration's final budget,” said Senate Republican Leader Steven Oroho (R-24). “That's a huge and unsustainable spending increase in just six years. We know that billions of that will likely be pork spending that should be redirected to tax relief.”
-Hoarding tax overcollections: “The Murphy administration continues to hoard tax overcollections while people are suffering,” said Senate Republican Budget Officer Declan O’Scanlon (R-13). “Instead of providing real tax relief to New Jerseyans, the governor is building a massive $10 billion surplus that will get devalued by inflation. We should focus on addressing tax bracket creep and providing inflation relief to New Jerseyans.”
-Murphy’s not a tax cutter: “Any insinuation that Governor Murphy is a tax cutter is laughable,” said Senator Michael Testa (R-1). “He’s raised income, business, and payroll taxes by billions of dollars since he took office. His school aid cuts to hundreds of rural and suburban school districts have driven property tax increases across New Jersey. He’s done nothing to stop automatic tax and toll increases or address tax bracket creep as Republicans have proposed.”
-Murphy signed & extended the CBT surcharge: “Governor Murphy signed the corporate business tax surcharge into law and broke his promise by extending it for years until the end of 2023,” said Senator Doug Steinhardt (R-23). “He doesn't deserve a pat on the back for finally keeping his word to let it expire years late. Even with the surcharge expiration, New Jersey will still have one of the highest business taxes in the nation. It’s part of the reason that New Jersey consistently has the worst business climate in the U.S. in national rankings. We need to do more to make New Jersey more competitive.”
-No indexing of tax brackets, no charitable deduction: “We're concerned that there's still no mention of indexing income tax brackets for inflation as we've proposed to provide inflation relief to New Jerseyans,” said Senator Anthony M. Bucco (R-25).“This is a simple solution employed by both the federal government and 37 other states to protect low- and moderate-income workers and families from the harmful impact of tax bracket creep. There’s also no deduction for charitable donations to the non-profits that serve our communities. These charitable organizations provide important services in hundreds of communities that government agencies would otherwise have to provide at taxpayer expense. It’s time to finally implement these common-sense proposals that Republicans have offered for years.”
-The debt/pork/pandemic slush funds continue: “We support paying down debt, but we shouldn’t put billions into an opaque slush fund controlled by Democrat party bosses,” said Senator Declan O’Scanlon. “There's no guarantee any of the money will be used to pay down debt. It can just as easily be used to fund pork projects favored by Democrat bosses and falsely billed as ‘debt prevention.’ That remains true for billions in remaining pandemic relief funds as well. Transparency and oversight of the process for approving the use of these funds needs to increase substantially. Proposed uses of debt and pandemic relief funds should be approved by the full Legislature after open public hearings. The current closed JBOC process is ripe for abuse.”
-Murphy should stop school funding cuts: “Every year since Governor Murphy took office, hundreds of school districts have had more and more of their aid cut, even as total state funding for education has increased,” said Senator Doug Steinhardt. “If we're going to spend a billion more on schools next year, there's no reason any district should have their funding cut to the detriment of students and property taxpayers, especially when every district is struggling with the impact of inflation on their budgets.”
-Republicans have offered solutions: "Republicans have proposed fixes to stop wasteful spending and offer inflation relief that Democrats have ignored," said Senator Steve Oroho. "We’ve proposed more transparent and fair processes for using pandemic and debt relief funds to help taxpayers, lower state debt, and fund important programs. We’ve proposed targeted tax cuts to make the state more competitive, and proposed protecting our schools from harmful cuts in state aid. We can address all of these problems with the solutions Republicans have proposed."

The Republican members of the Senate Budget & Appropriations Committee continued their push for transparency in the budget process with a new call for Governor Phil Murphy to fully explain the hundreds of millions of pork spending in the FY 2022 State Budget he will sign into law this morning.

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The Republican members of the Senate Budget Committee continued their push for transparency in the budget process with a new call for Gov. Phil Murphy to fully explain the hundreds of millions of pork spending in the FY 2022 State Budget he will sign into law this morning.

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Senate Republican Budget Officer Steven Oroho (R-24), Senator Declan O'Scanlon (R-13),Senator Michael Testa (R-1), and Senator Sam Thompson (R-12) sent a letter to Governor Murphy (click here for PDF) calling for the immediate release of budget resolutions and other materials that might explain the purpose for hundreds of millions of dollars of so-called pork spending that was added by Democratic legislators to the budget immediately before it was voted on and approved by the Legislature in party line votes last week.

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The Republican senators included a small sample of pork add-ons (click here for PDF) included by Democrats in the budget that have not been explained publicly.

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The full text of the letter to Governor Murphy is below:

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Dear Governor Murphy:

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We are writing this letter asking that you immediately share all budget resolutions or other material in your, or your Administration’s, possession that explain line items of a parochial nature (commonly referred to as pork) added to the Appropriations Act and that were not included in your proposed budget.

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The public has a right to know how their money is being spent. Alternatively, if their governor approves hundreds of millions of dollars of what appears to be pork without knowing what it is and without a basis for why it is worthy of their tax dollars, they have a right to know that too.

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In recent days you have suggested there is no pork in the budget you have been asked to sign, and so we attach the following items as examples of the line items related to this request.

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Finally, please treat this request as a formal request for government records pursuant to the Open Public Records Act and provide a response immediately -- as is statutorily required for financial record requests.

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Sincerely,

Steven V. Oroho
Declan J. O'Scanlon, Jr.
Michael L. Testa, Jr.
Samuel Thompson

The New Jersey Senate voted to advance legislation sponsored by Senator Declan O'Scanlon that would exempt certain school districts from state aid cuts.

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Sen. Declan O'Scanlon's bill that would exempt certain school districts from state aid cuts was passed by the New Jersey Senate.

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"The Senate voted today to help a local school district that I represent maintain necessary transportation services for their students. Moreover, the Senate showed a bipartisan commitment to stop aid cuts for a struggling school, which is a small, but much-needed step towards reforming New Jersey's school funding formula," said O'Scanlon. (R-13). "Republicans have argued for years that the state's school funding formula needed to be rolled back and reformed to avoid unfair aid cuts and to protect taxpayers. Many schools throughout the state are suffering from the S2 formula and bridging the gap with supplementary funding is not a long term solution. This legislation would provide assistance to the Freehold Regional School District to ensure that their students do not lose courtesy busing in the coming school year."

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Since 2020, New Jersey has used a controversial school funding formula known as S2, which was created in 2018 to provide an equitable distribution of aid among school districts throughout the state. Republicans have argued that this formula is deeply flawed and believe that it should be fixed to avoid unfair school aid cuts.

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"In response to proposed school funding cuts, the Freehold Regional School District voted to eliminate necessary student transportation services to make ends meet," O'Scanlon noted. "This is a direct reflection on the flawed nature of the S2 school funding formula and should leave no doubt as to why it needs to be reformed."

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In March 2023, it was revealed that nearly 200 school districts were losing funds under the proposed 2024 fiscal budget. To save money in lieu of funding cuts, the Freehold Regional School Board eliminated bus routes for students who live within 2.5 miles of the school.

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Senator O'Scanlon's bill, S-3950, aims to freeze school aid cuts for regional schools that meet certain requirements. To receive an exemption under the bill, the district must be regional and compromised of five or more constituent school districts. Additionally, they must spend 15% less in administrative costs per pupil than the statewide average for regional school districts and have mitigated the costs of regionalization.

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The final condition that eligible school districts must meet is to have raised their district taxes up to the maximum limit permitted by law during each of the last five years.

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School districts that receive an exemption under the bill would be prohibited from eliminating courtesy busing for students who reside in their district.

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"Children should not have to put their lives at risk walking to and from school as they would in the Freehold School District if they were to lose their courtesy busing. This bill restores funding for the district so that they can provide necessary transportation for their students," O'Scanlon added. "While this bill doesn't address other school districts that are struggling throughout the state, we have to start somewhere so that we can reach a long-term solution for the state. When you let the little issues pile up, it makes addressing the bigger picture more difficult."

Senators Repeat Calls for Treasurer to Appear Before & Be Held Accountable by Budget Committee

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Saying it's clear that New Jersey Treasurer Elizabeth Maher Muoio intentionally misled legislators on behalf of the Murphy administration to hide the state's rapidly increasing debt, the Republican members of the Senate Budget & Appropriations Committee repeated their calls for the Treasurer to be held accountable by the committee in a letter today (click here for PDF) to Senate Budget Chairman Paul Sarlo (D-36).

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Saying it's clear that New Jersey Treasurer Elizabeth Maher Muoio intentionally misled legislators to hide the state's rapidly increasing debt, the Republican members of the Senate Budget Committee repeated their calls for the Treasurer to be held accountable by the committee.

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The Republican senators also said the Treasurer should be called to respond to serious allegations raised today by Bloomberg that the Murphy administration deliberately looked the other way as a state vendor took tens of millions of dollars from the state despite failing to meet its contractual obligations to help lower health care costs.

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"At the same time that Treasurer Muoio was telling legislators that New Jersey's debt had decreased to a seven-year low, her department was preparing to release the long-overdue state audit showing that debt actually climbed by $44 billion in a single year," said Senate Republican Leader Steven Oroho (R-24), a member of the Budget Committee. "It's clear the Treasurer knew her prepared testimony to our Budget Committee was grossly inaccurate. She must becalled to appear before our committee to be held accountable for misleading the Legislature in what appears to be an intentional way and to address allegations of serious fiscal mismanagement by the Murphy administration."

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In testimony submitted to the Senate Budget & Appropriations Committee on May 16, Treasurer Muoio said, "we have substantially reduced our debt load while securing real savings for the taxpayers of the state." She continued, saying, "In fact, the State's current debt load is now lower than it's been at any time since FY 2015."

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On May 25, just nine days later, the Treasurer signed and released the Annual Comprehensive Financial Report for FY 2021, commonly referred to as the "state audit," which contradicts her testimony to the Legislature.

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According to the audit, New Jersey's long-term obligations last year increased from $204.2 billion to $248.6 billion, an increase of $44.4 billion, or 21.7%.

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"It's unconscionable that we were provided information by Treasurer Muoio that was flat out wrong, and it seems certain she knew it was wrong since the audit with the true numbers was about to be released," said Senator Declan O'Scanlon (R-13), the Republican Budget Officer." This wasn’t just stretching the truth or leaving out facts that are unflattering to the Murphy administration. This was a deliberate attempt by Treasurer Muoio and the Murphy administration to hide New Jersey's exploding debt from the public and the Legislature. To make matters worse, we’re now learning that the administration is failing to properly manage contracts that could stop health care related debt from growing even higher."

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The $44 billion debt increase revealed by the state audit includes a $3.8 billion increase in bonded debt and a massive $40.5 billion increase in pension and post-employment benefit liabilities.

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"Governor Murphy keeps saying he's responsible for fixing the pension system and cutting public employee benefit costs, but the numbers tell a different story," said Senator Sam Thompson (R-12), a member of the Senate Budget Committee. "He's trying to weave a narrative to prepare a presidential run without actually doing the work of lowering costs for New Jersey taxpayers now or in the future. In the process, his administration is hiding information that the Legislature needs to do the hard work that he has failed to do. That’s not something we should tolerate."

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According to The Record, a 2020 health benefit reform enacted by Governor Murphy that he said would lead to massive savings has backfired and is driving up costs for many school districts and property taxpayers.

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Further, Bloomberg reported today that the governor’s office pressured state officials to stop an attempt to claw back tens of millions of dollars from the insurance company that manages health benefits for state workers after the insurer failed to deliver a contracted program to help employees find better care at lower costs.

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Senator Michael Testa (R-1) said these Murphy administration failures and the Treasurer’s misrepresentations are important to address since out-of-control health care costs contributed $12 billion to the $44 billion increase in the state’s long-term obligations.

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"I think there should be consequences when a member of the governor's cabinet fails to provide truthful testimony to the Legislature,” said Testa, a member of the Senate Budget Committee. “We should hold her accountable for lying to us and for failing New Jersey taxpayers so miserably. I won’t be surprised, however, if the Democrats who run the Legislature continue to cower in fear of the Murphy administration and let Treasurer Muoio get away with it. Ultimately, it’s taxpayers who will pay a greater price if we do nothing."

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Prior to today’s letter from the four Republican Budget Committee members, Testa made two prior requests for Treasurer Muoio to be called to appear before the Budget Committee with no response from Senate Democrats.

Senate Republican Leader Steven Oroho and Senate Republican Budget Officer Declan O'Scanlon responded to a new report from the State Auditor that shows that more than $5 billion in pandemic relief funds remains unspent by the Murphy administration nearly two years after it was received:

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Sen. Steven Oroho and Sen. Declan O'Scanlon responded to a State Auditor report that shows that more than $5 billion in pandemic relief funds remains unspent by the Murphy administration nearly two years after it was received.

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"Senate Republicans have questioned for three years why the Murphy administration has shown absolutely no urgency in using billions of federal pandemic relief funds to help New Jersey families and businesses in a timely manner," said Oroho (R-24). "The State Auditor's latest report showing that more than $5 billion of American Rescue Plan funds remains unspent after two years confirms everything we've been saying."

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According to the report, just $1.1 billion of the $6.2 billion in American Rescue Plan funds received by New Jersey from the federal government on May 19, 2021 has been spent. Senate Republicans offered a detailed plan for using the funds on April 11, 2021 when the state's likely allocation was announced.

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"In contrast with the Murphy administration's failures, Senate Republicans offered a detailed plan to use relief funds efficiently and effectively to support small businesses, fix our broken unemployment and MVC computer systems, stop unnecessary tax increases, protect school funding, and help families in need," said O'Scanlon (R-13). "Unfortunately, Trenton Democrats refused to listen and many serious problems that could have been addressed with these funds remain inexplicably unresolved."

Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Victoria Flynn (all R-Monmouth) announced that six school systems within the 13th Legislative District will receive additional funding in the form of Stabilization Aid this school year, which will offset loses those schools encountered when the Murphy Administration reduced state aid to several Monmouth County school districts.

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Following Gov. Murphy's school aid cuts, Sen. Declan O’Scanlon, Asm. Gerry Scharfenberger, and Asw. Victoria Flynn announced that six school systems within the 13th Legislative District will receive additional funding in the form of Stabilization Aid this school year.

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The news of increased funds comes after months of advocacy by the legislators of District 13 to the New Jersey Department of Education that school districts cannot absorb those losses while also trying to address the academic, social and emotional needs of students following years of interrupted learning due to the pandemic. All three legislators have supported the use of the federal dollars the State has received but not yet used to address these shortfalls in funding.

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“This is a step in the right direction, but the work is far from over. It is encouraging that our consistent advocacy has resulted in additional funding, yet we have a long way to go until our schools recoup the entirety of aid they rightfully deserve,” said Senator O’Scanlon. “We are not going to rest on our laurels, we are going to continue to push the administration and Department of Education until our school districts are made whole. We will stay to be on the frontlines of this fight and this coming budget cycle will give another opportunity to keep the pressure mounting.”

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“It is encouraging to see that the enormous amount of force we put on the New Jersey Department of Education during the Assembly Budget Committee hearings led to this announcement. We have and will continue to hold the department accountable for the negative impacts their cuts have had on our schools as well as taxpayers who have been left to carry the financial burden,” commented Assemblyman Scharfenberger. “I am encouraged that they have relented, and more aid is rightfully being sent to these districts, yet we have a long road ahead of us.”

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Assemblywoman Flynn concurred with her colleagues and commented that,

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“While we are pleased that the State has restored some funding for the current school year to our school districts here in Monmouth County, we all know it is not a long-term solution to the public education crisis that exists in this State. The fact remains that the State chose to cut state aid to District 13 school districts earlier this year, in the amount of $7.4 million, despite being aware of the remedial work that needs to be done to catch students up because of interruptions to their schooling over the last three years. That decision alone was unconscionable. We have no guarantee that those school districts receiving stabilization aid this year will receive it again next year, which is startling news to any school district that is now in the throes of preparing for next school year’s budget.”

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Assemblywoman Flynn further commented on the delayed release of Spring test scores by the State (which was released on the eve of the holiday season) by noting that, “To date, there appears to be no plan by the State to combat learning loss – an inexcusable lack of action that has very real-world implications. For instance, the data released about the present-day High School Seniors in this State shows more than half are not ready to graduate high school. How is that acceptable? How does this data not set off alarm bells throughout the State to address those known gaps in education? Thus, the restoration of funding is fantastic news for those school districts that applied to receive this one-time funding source, but the State needs to implement a long-term solution to reallocate State resources to address the known academic needs of our students while also ensuring that schools have additional support to address the mental health needs of New Jersey students. We need to treat students as a priority, and right now, we are not, as a State, in how we budget for our schools.”

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13th Legislative Districts Awarded Stabilization Aid

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1. Hazlet Schools: $336,545
2. Keansburg Schools: $3,640,000
3. Keyport Schools: $56,803
4. Marlboro Schools: $2,143,646
5. Middletown Township Schools: $1,970,000
6. Union Beach Schools: $1,124,800

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Stabilization Aid is a competitive grant process that school districts must apply for to recuperate limited funding from cuts imposed as a result of State’s School Funding Formula changes enacted by the Murphy Administration. The FY 2023 State Budget held a total of $30 million for this grant.

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Comparatively, schools within the 13th Legislative District (Monmouth County) were imposed with $7.4 million in funding cuts this year and a total of over $19 million since the changes were implemented in 2018.

Revenue Update Shows Massive $5 Billion Increase in State Revenues

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The Republican members of the Senate Budget & Appropriations Committee responded to a revenue update from the Murphy administration showing a massive $5 billion increase in State revenues during FY 2021 and FY 2022, well beyond what legislators were told to expect. Combined with nearly $6.5 billion in federal relief funds sent to New Jersey, the Murphy administration now has $11.5 billion in cash and absolutely no plan to use it to help New Jersey.

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The Republican members of the Senate Budget Committee responded to a revenue update from the Murphy administration showing a massive $5 billion increase in State revenues, well beyond what legislators were told to expect.

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"The updated revenue figures demonstrate yet again that the information provided by the Murphy administration to the Legislature in recent weeks was grossly inaccurate," said Senate Republican Budget Officer Steven Oroho (R-24). "When she last testified before our committee in May, Treasurer Muoio suggested revenues might be adjusted upwards by a few hundred million dollars. We deserve the opportunity to ask the Treasurer why the Murphy Administration’s guidance was off by nearly $5 billion. Further, I believe we should form a special committee with subpoena power to investigate how the Murphy administration has misled lawmakers, the court, and taxpayers on our finances and the billions of dollars Governor Murphy borrowed unnecessarily last year."

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Senator Declan O'Scanlon (R-13) noted a pattern of the Murphy administration withholding information from the Budget Committee:

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"A few weeks ago, the Treasurer dropped a bombshell on Budget Committee members by revealing under questioning that the Murphy administration had already received nearly $6.5billion in federal relief funds but had failed to tell anyone," said O'Scanlon. "Now we're learning she again has failed to notify legislators in a timely fashion of a multi-billion dollar increase in tax collections. We have a disturbing pattern of the Murphy administration withholding and misdirecting lawmakers on the true state of New Jersey's finances. It’s extremely concerning that the Murphy administration now has $11.5 billion of state and federal funds with absolutely no plan for providing property tax relief or helping New Jersey’s small businesses recover from the pandemic or resolve the looming eviction tsunami.”

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Senator Sam Thompson (R-12) expressed serious concern that Treasurer Muoio's planned appearance before the Assembly Budget Committee was canceled today, making it unclear ifshe would appear before the Senate tomorrow as planned.

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"We are disturbed that Treasurer Muoio may not appear before our budget committees today and tomorrow as planned to provide a critically important revenue update to legislators," said Thompson. "The Legislature has a constitutional obligation to pass the next State Budget by the end of June and we deserve the opportunity to question the Treasurer to get a full understanding of our current financial picture and projections for the future. This is completely contrary to the open, transparent, and public budget process our democracy requires."

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Senator Michael Testa (R-1) said the cancelation of the Treasurer's revenue updates to legislators is a clear sign the Murphy administration is afraid of tough questions about how it is managing New Jersey's money.

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"Treasurer Muoio couldn't articulate the Murphy administration’s plan for putting billions of federal relief funds to effective use, and canceled hearings are a clear sign they have no plan for managing the extra billions Governor Murphy has collected from New Jersey taxpayers in recent weeks," said Testa. "The Murphy administration shouldn't hide Treasurer Muoio from the Legislature. When she appears before us next, she better have a plan and be capable of answering all our questions, including how the Murphy administration plans to spend the $11.5billion of new cash to help people. If not, Treasurer Muoio should be the next member of Governor Murphy’s cabinet to resign."

The Republican members of the Senate Budget & Appropriations Committee called on Democrats to hold required oversight hearings to review proposed uses of federal pandemic relief funds and a state fund intended to pay down and prevent new debt.

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Senate Republicans called on Democrats to hold required oversight hearings to review proposed uses of federal pandemic relief funds and a state fund intended to pay down and prevent new debt.

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The request was made in a letter from Senate Republican Leader Steven Oroho (R-24),Republican Budget Office Declan O'Scanlon (R-13), Senator Sam Thompson (R-12), and Senator Michael Testa (R-1) to Senate President Nicholas Scutari (D-22), Majority Leader Teresa Ruiz (D-29), and Budget Chair Paul Sarlo (D-36).

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The full text of the letter is below (click here for PDF):

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Dear Senators Scutari, Ruiz, and Sarlo:

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We are extraordinarily concerned that there has been no public legislative oversight of the unparalleled budgetary power granted to Governor Murphy in this year’s State budget. We respectfully request that public oversight begin as soon as possible – consistent with statutory requirements and past commitments.

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As you are aware, the Appropriations Act requires the Joint Budget Oversight Committee(JBOC) to meet quarterly to provide oversight of how the Governor, in his sole discretion, is appropriating $300 million of federal block grants and how he will recommend appropriating approximately $700 million that requires JBOC approval.

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JBOC has similar oversight responsibilities with respect to the “Debt Defeasance and Reduction Fund” which allows the Governor to recommend appropriations – with JBOC approval – of more than $3 billion of uncommitted balances.

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In addition to required JBOC meetings, additional oversight is sorely needed -- and has been promised. At the June 27th meeting of the Senate Budget and Appropriations Committee (SBA),Senator Sarlo indicated after conferring with Senator Ruiz that SBA would hold hearings and provide oversight with respect to dozens of large grant programs established in the Appropriations Act “Debt Defeasance and Reduction Fund.”

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The first fiscal quarter is the most important time when oversight was needed – as the Governor and Administration have been taking steps to advance money. Nonetheless, neither committee has met and public oversight remains nonexistent.

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Our concerns about the lack of engagement and oversight are particularly concerning for several reasons.

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First, we are concerned that billions of dollars sit in idle State accounts while inflation devalues these funds at a rate approaching 10% annually. The nonpartisan Office of Legislative Services has indicated that the Governor and his Administration have failed to retire any debt with the $3billion of “Debt Defeasance and Avoidance Fund” set aside for that purpose or even encumber under contract any of the $3 billion set aside in that fund for capital projects. Similarly, they have failed to recommend a single use for federal funds that requires JBOC approval.

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Second, though the Governor has not yet advanced many uses of the $300 million of federal funds under his unilateral control, what he has advanced is disturbing. He has advanced a program that hands out $2,000-$4,000 checks to criminals departing prison and will purchase new SUVs for his use and that of the Lt. Governor.

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Finally, while dozens of special grant programs under his control (an accounting of some are attached hereto) are being eaten up by inflation, there has been little information made available about how the grant programs will work and how applications can be submitted. Without legislative pressure and legislative oversight, the value of the grant programs continues to be eroded by inflation and administration decisions being made about how programs will work will become harder and harder to influence or correct when correction is necessary.

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Hard questions need to be asked.

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-Why are billions of dollars being allowed to be consumed by inflation?
-Of the small amounts advanced, why is it that cash payments for criminals and new SUVs for the Governor and Lt. Governor are priorities?
-Why are our proposals to use funds to head off planned tax and toll increases and establish local capital projects and emergency preparedness being ignored?
-What thoughtful proposals have been offered by the public that have been ignored?

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Legislative oversight is required in the Appropriations Act. It has been promised. It’s past time to deliver.

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Sincerely,

Steven V. Oroho
Senate Republican Leader

Declan O'Scanlon, Jr.
Republican Budget Officer

Samuel Thompson
Member - Budget Committee

Michael L. Testa, Jr.
Member - Budget Committee

Senators Say Billions of Unspent COVID-19 Relief Funds at Risk of Biden Administration Claw Back.

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Republican members of the Senate Budget and Appropriations Committee slammed Governor Murphy's mismanagement of federal COVID block grant funding after reports surfaced that President Biden may support bipartisan efforts to rescind idle federal stimulus funds.

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Senators O'Scanlon, Oroho, Testa, and Steinhardt slammed Governor Murphy's mismanagement of federal COVID block grant funding after reports surfaced that the federal government may rescind idle federal stimulus funds.

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"Governor Murphy and Trenton Democrats have abused billions of taxpayer dollars and the federal government wants it back." said Senate Republican Budget Officer Declan O'Scanlon(R-13). "For two years, the Murphy administration has let billions of dollars wither away in idle accounts while struggling homeowners and businesses were decimated by inflation. We should be putting this money to good use to help businesses and taxpayers, but Democrats have consistently rejected sensible Republican proposals to put money into the hands of those who need it most. Governor Murphy's abdication of allocating funds is a slap in the face to New Jersey taxpayers."

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President Biden indicated that he is open to a proposal that would claw back up to $70 billion dollars of federal stimulus as part of negotiations with House Republicans to raise the debt ceiling.

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"Fiscal concerns stemming from the pandemic could have been alleviated with the remaining five billion dollars that Governor Murphy has refused to disburse," said Senate Minority Leader Steven Oroho (R-24). "Governor Murphy's executive orders severely constrained small businesses forcing many of them to close, leading families to fall behind during the pandemic. Although there were billions of dollars waiting to be utilized for the last two years to help those in need, and countless efforts by Republicans to reach responsible solutions, the Murphy administration showed no urgency to provide any legitimate long-term assistance. If these funds are clawed back by President Biden and the federal government, the fault will land squarely on the Murphy administration."

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In addition to allowing billions of dollars to go unused while inflation destroyed its value, Senate Republicans argued that Governor Murphy wasted money on items that were not related to COVID or economic development.

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"Republicans elevated solutions to provide aid quickly and efficiently while the money that was spent by the Murphy administration bankrolled Democrat priorities," said Senator Michael Testa(R-1). "It's disturbing that the Murphy administration neglected working families, businesses, and even school children by cutting education funding to prioritize giving thousands of dollars in cash to convicted felons leaving jail and to buy himself and his cabinet new SUVs. The Murphy administration must explain why struggling New Jersey families aren't a priority for this governor. It's despicable."

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One of the more profligate abuses of federal stimulus money came in the form of several brand new leased SUVs purchased by the Murphy administration.

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Senate Republicans criticized Governor Murphy for the misuse of funds, as Democrats said the vehicles were necessary for the Governor to provide leadership and support to the State'sCOVID-19 recovery efforts — even though the pandemic was over.

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"It's unconscionable that Governor Murphy has used federal stimulus money on his own administration and left billions more on the table while leaving struggling families to fend for themselves in one of the worst economic environments of our lifetime," said Senator Doug Steinhardt (R-23). "Rather than work with Republicans to lower taxes and improve our state's infrastructure, Governor Murphy sat on billions of dollars and refused to put them to effective use.”

Say There's Been No Transparency from Democrats on Additions to Budget & Related Bills that Will Be Rushed to Enactment

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The Republican members of the Senate Budget & Appropriations Committee called on Governor Murphy and legislative Democrats to release the FY 2024 State Budget and explain the dozens of other bills that the Budget Committee will be called to vote upon tomorrow.

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The Republican members of the Senate Budget Committee called on Gov. Murphy and legislative Democrats to release the FY 2024 State Budget and explain the dozens of other bills that the Budget Committee will be called to vote upon tomorrow.

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"It's outrageous that we're going to be asked to vote on a record spending bill tomorrow by the Democratic Majority without anyone having seen a copy of the bill yet," said Senator Declan O'Scanlon (R-13), the Republican Budget Officer. "We don't even have an outline of the plan to help us understand the billions of dollars of changes they are proposing. This is no way to run a government."

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The Legislature and Governor Murphy have a constitutional deadline of June 30 to adopt a balanced budget to prevent a government shutdown starting July 1.

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Democrats have not shared so much as an outline of their budget bill that must be adopted within the next four days even though it is expected to differ significantly from Governor Murphy's original budget proposal. They issued a Senate Budget Committee agenda for tomorrow that will rush bills through the legislative process spending nearly $100 billion of taxpayer funds and giving away billions of dollars of special tax credits.

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“The Governor proposed almost 100 special line items of pork in the original draft of the budget that his administration repeatedly refused to explain during budget hearings this spring and through multiple public record requests," said Senate Republican Leader Steven Oroho (R-24)."New Jerseyans deserve to know why a favored few are getting huge budget handouts that nobody else is getting. There's nothing fair about that."

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It is believed that despite Republican proposals to improve the budget, Democrats will advance a budget that allows five tax increases totaling $2 billion to move forward.

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It also is expected to maintain cuts in aid to 160 school districts and continue hoarding billions of dollars in several slush funds controlled by a handful of Democrat leaders.

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“Legislators will be asked to vote for a budget with hundreds of taxpayer-funded gifts inserted by Governor Murphy including money for a private lacrosse club, a French Arts museum in a city where school aid was slashed, and even a Dominoes Club," said Senator Michael Testa(R-1). "There's also an unexplained $250,000 appropriation for a privately run pool in Deal, one of the richest communities in the state, to an organization whose director is paid $300,000 a year. We asked for explanations for this funding from the Governor and legislative Democrats and got nothing. They know this spending isn't justified or fair so they don't even bother trying to explain it."

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It is still unknown how many special line items will be added to the budget this week and whether they will be explained in advance of the budget vote.

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“If history is any guide, we are about to get a budget at the last minute with dozens or even hundreds of Christmas tree add-ons with no explanation, justification, or background," said Senator Doug Steinhardt (R-23). "This is the exact opposite of how an open and transparent budget process is supposed to work."

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The unexplained pork already requested by Governor Murphy in his budget proposal includes:

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The Republican Budget Committee members have released all of their requested budget changes, including explanations and justifications, in advance of the budget vote in accordance with Senate Rules.

The State Treasurer Admitted NJ Received $6.3 Billion from the Feds, but the Administration Kept it Secret

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For the second time in less than two weeks, Senator Declan O’Scanlon’s laser-targeted questioning during Senate budget hearings revealed damning insight into the Murphy Administration.

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During a revenue update by State Treasurer Elizabeth Muoio, Senator Declan O’Scanlon asked a series of questions prompting a revelation that the state had received $6.3 billion in federal relief funds without divulging the info.

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Today, during a revenue update by State Treasurer Elizabeth Muoio, O’Scanlon asked a series of questions prompting a revelation that the state had received $6.3 billion in federal relief funds without divulging the info.

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“They received the whole hog last night - $6.3 billion – but didn’t think to mention it to the budget committee or anybody else,” said O’Scanlon. “As a result of my questions, the information slipped out, and every member of the budget committee, Republican and Democrat alike, were stunned by the admission.

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“It makes us wonder what else the Administration is trying to hide,” O’Scanlon said.

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On May 11, O’Scanlon’s queries led to the disturbing realization that the Administration’s top health official, Health Commissioner Judith Persichilli, does not understand vaccine efficacy statistics.

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“That was another stunning revelation that would seem to explain the Administration’s continued over-cautious approach that conflicts with the 48 other continental states and CDC guidelines,” O’Scanlon said. “The commissioner’s misunderstanding had the effect of dramatically over-estimating the threat to the vaccinated. The threat is virtually zero for serious illness or hospitalization.”

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Today’s news of the $6.3 billion pool of federal money raises questions further about Murphy’s plans for the money.

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“We showed them our plan for responsibly allocating more than $6 billion in American Relief Plan funding last month,” said O’Scanlon. “The Administration famously dropped the ball in its handling of the $2.4 billion of CARES Act funds that came to New Jersey in April 2020.

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“He sat on the money for months and then used it to pay for ordinary government expenses rather than helping people. With another $6 billion plus, we can’t afford to let him make the same mistake on an even bigger scale,” O’Scanlon said.

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“People in this state need relief now! Since he has shared his plan for the money, I worry that he has another secret plan to waste the money like he did last time and just doesn’t want public scrutiny of it,” the Senator said.

More than eight months since Governor Murphy signed bipartisan legislation sponsored by Senators Paul Sarlo and Declan O’Scanlon requiring the State Treasury to divest certain Russian holdings, the State appears to have done little in way of following the law’s requirements.

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Sen. O’Scanlon is calling on the State Investment Council to require Treasury officials to explain the lack of compliance with the law at their meeting on October 26 and to direct Treasury officials to ramp up its divestment activities.

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“It’s unconscionable that as Russia continues its illegal war in Ukraine, the Treasury Department appears to have no sense of urgency to comply with a law requiring them to cut economic ties with the invading country,” said O’Scanlon (R-13). “The people of New Jersey deserve answers. Governor Murphy signed this bill into law back in March and yet no meaningful action has been taken since. Adding insult to injury, we have no idea what is causing the delay because there has been a lack of transparency from the Treasury."

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O’Scanlon is calling on the State Investment Council to require Treasury officials to explain the lack of compliance with the law at their meeting on October 26 and to direct Treasury officials to ramp up its divestment activities.

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The legislation, S-1889, was enacted by the Governor more than seven months ago on March9, and requires the Treasurer to divest State holdings and investments that support Russia. The first step is for the Treasury to prepare a list of companies, businesses, and oligarchs that would be subject to divestiture and prohibitions of participating in public contracts. The bill required Treasury to release a first draft of the list within three months and updates every six months thereafter.

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To date, an initial list has not been produced—according to a response to a recent request for the list. This indicates required divestments and prohibitions on government contracts have been delayed.

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“This administration has made it more of a priority to sue oil companies who supply energy to the United States, and to divest from American companies like Smith & Wesson, than to divest from companies that prop up a Russian leader who violated international law by invading a sovereign nation,” added O’Scanlon. “The Treasury sleeps while Ukrainians are suffering, and they need to wake up and just follow the law the Governor signed—not only because it’s the law, but because common sense demands it.”

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The State Investment Council meets for its next quarterly meeting on October 26.

Joint Budget Oversight Committee Still Not Considering Plans to Put Billions in Idle Pandemic & Debt Relief Funds to Effective Use

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Senate Republican Budget Officer Declan O'Scanlon responded with dismay after the Joint Budget Oversight Committee (JBOC) issued an agenda for its meeting on Monday that fails to consider proposals to put to use billions in idle pandemic relief funds and billions more set aside for debt relief in the FY 2023 State Budget.

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Sen. Declan O'Scanlon responded with dismay to the Joint Budget Oversight Committee's continuing failure to consider plans to put billions in idle pandemic and debt relief funds to effective use.

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"We have billions in unspent federal relief funds sitting idle in State accounts for nearly two years that's getting devalued by inflation," said O'Scanlon (R-Monmouth), a member of the committee. "We have billions more set aside in the current State Budget to pay down debt that hasn't been touched for more than six months. Since JBOC is responsible for approving the use of these funds, why has no plan been presented by Governor Murphy or the Democratic majority for approval? WTF are you waiting for?"

Murphy's Claim of Helping Renters is Bogus

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Senator Declan O’Scanlon is warning that Governor Murphy's proposal to replace two tax rebate programs (the longstanding Homestead Rebate Program and the “middle class rebate program” created last year) with a new “ANCHOR” rebate will reduce existing renters’ rebates by up to 50 percent, meaninglessly increase total funding for rebates, and won't be distributed for 13 months (until May of 2023).

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Sen. Declan O'Scanlon said renters would have their rebates cut in half under Gov. Phil Murphy's budget plans.

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Governor Murphy has been touting his new proposal which replaces and renames two existing rebate programs as his grand tax relief proposal after being ridiculed for raising $5 billion of taxes over four years. Murphy has promoted his new ANCHOR proposal as the main tax relief in his record-spending $49 billion budget.

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Murphy’s proposed budget commits $900 million to the new ANCHOR rebate, but it also eliminates $650 million for the other two rebate programs.

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“This bait and switch was spun as grand tax relief in a state where affordability is a myth,” said O’Scanlon (R-13). “But the man behind the curtain is telling half-truths and trying to baffle taxpayers with bull from the front office.”

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Murphy has bizarrely claimed his ANCHOR program will newly help renters by giving them up to$250 rebates - even though the “middle class rebate program” he is canceling already makes tenants eligible for rebates up to $500.

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“The ANCHOR program is appropriately named because it throws an anchor to drowning renters whose rebates are being cut. I’m not sure what you would call that, but it certainly isn’t tax relief,” O’Scanlon said.

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The Middle Class Tax Rebate, set to be supplanted by the ANCHOR plan, was created by Murphy’s enactment of the so-called Millionaires Tax. Qualifying taxpayers who will receive up to a $500 tax rebate this year will lose that benefit under Murphy’s FY 2023 budget, which also eliminates the popular Homestead Rebate.

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“He's raised taxes by $5 billion and his claim of having embraced tax relief amounts to little more than putting lipstick on a pig.”

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In contrast, Republicans have proposed a pair of “Give It Back” tax credits that would provide$4.5 billion of immediate tax relief to New Jerseyans. The first proposal would return $3 billion of tax over-collections to families through a $1,000 tax credit. The second proposal would provide an additional $500 tax credit to families for inflation and gas price relief. The tax credits would be returned as direct payments to New Jersey families when the legislation is enacted.

Republican Budget Committee Members to Oppose Extension, Say Debate Long Overdue on Returning Billions of State & Federal Funds to Taxpayers

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Senator Declan O'Scanlon said there's no reason for the Legislature to let Governor Phil Murphy delay his Budget Message by two weeks, and the Republican members of the Senate Budget & Appropriations Committee will vote against legislation allowing the delay.

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Sen. Declan O'Scanlon said there's no reason to let Gov. Phil Murphy delay his Budget Message. Republican members of the Senate Budget Committee will vote against legislation allowing the delay.

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"We believe Governor Murphy should comply with the law and deliver his Budget Message to the Legislature on time and in person," said O'Scanlon (R-13), the Senate Republican Budget Officer. "Both the Senate and General Assembly have been holding regular in-person sessions safely, so there's no legitimate public health reason to delay a joint session, despite what the governor seems to be saying.”

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State law requires the Budget Message to be delivered annually by the governor to the Legislature by the fourth Tuesday in February, which is February 22 this year.

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O’Scanlon said the push for a delay is just another attempt by the Murphy administration to limit budget transparency by delaying the release of comprehensive fiscal data to the public and legislators.

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"The proposed delay is really about buying time to try and hide $3 billion of over taxation that everyone knows exists and should be given back to taxpayers,” said O’Scanlon. "That’s why the Murphy administration is trying to keep his budget plans a secret for as long as possible."

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Charles Steindel, former economist for the Treasury Department, estimates State revenues will be $3 billion higher than the Murphy administration assumed in the current FY 2022 State Budget, driven by higher taxes and inflation.

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"Despite their attempts to limit transparency, we know the Murphy administration is sitting on billions of unspent federal relief dollars and billions more in taxes collected from New Jerseyans that wasn't expected," added O'Scanlon. "We shouldn’t give Governor Murphy more time to figure out how to spend, and likely waste, that money. The solution, as Senate Republicans have proposed, is clear. He should Give It Back to New Jersey taxpayers. We know that today."

Says Process Is Broken, But Democrats Currently in Charge Have No Willingness to Fix It

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Senator Declan O'Scanlon said a total lack of budget transparency demonstrated yesterday by New Jersey Democrats was shameful after tens of billions of dollars of spending was approved with minimal information available to legislators or the public.

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Sen. Declan O'Scanlon said a total lack of budget transparency demonstrated by New Jersey Democrats was shameful after tens of billions of dollars of spending was approved with minimal information available to legislators or the public.

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"Democrats in the Senate and Assembly budget committees made an absolute mockery of the concept of open and transparent government yesterday," said O'Scanlon (R-13), a member of the Senate Budget & Appropriations Committee. "They posted and voted upon budget-related bills that hadn't even been written yet. Nobody, not legislators voting on the bills nor the public that will be impacted, had any legitimate opportunity to review the legislation, understand it, or make suggestions for improvement.”

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During the Senate Budget Committee meeting, a supplemental appropriation of more than $114million for the current fiscal year was voted upon and approved before the bill was made available to committee members or posted online for public review.

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Republicans on the committee expressed concern that nobody had any idea what spending was included in the legislation. Not knowing whether the spending was justified or not, the Republican committee members abstained.

Democrats on the committee approved that spending measure sight unseen.

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The process was soon repeated when the Democrat-run committee approved the $46 billion appropriations act for FY 2022 just minutes after the 280-page budget bill was posted online for the first time.

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A vote was called, despite none of the committee members having seen the legislation, which includes Democratic legislative add-ons for so-called "pork" spending that totals in the hundreds of millions if not billions of dollars.

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"Governor Murphy and Trenton Democrats clearly feel empowered to circumvent our constitutional legislative process and make all of the important decisions in a back room shielded from public scrutiny," added O'Scanlon. "This entire budget process has been the most shameful, willful disregard for government transparency that Trenton has ever seen. Unfortunately, Governor Murphy and the Democrats currently in charge of the State House are unlikely to do anything to fix this broken process. Hell, they created it."

Murphy’s New Debt Will Cost NJ Taxpayers Unnecessary Interest Payments for Decades

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Senator Declan O'Scanlon (R-Monmouth) questioned a decision by Governor Phil Murphy to increase State debt by $400 million to fund projects at New Jersey's colleges and universities when his administration is sitting on billions in cash that could fully fund the proposed capital program.

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Sen. Declan O'Scanlon questioned a decision by Gov. Phil Murphy to increase State debt by$400 million to fund projects at New Jersey's colleges and universities when his administration is sitting on billions in cash that could fully fund the proposed capital program.

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"State support for our institutions of higher education has long been lacking, but that doesn't mean we should turn a blind eye to cost when we decide to make an important investment," said O'Scanlon, a member of the Senate Budget & Appropriations Committee. "I don't think it makes sense for Governor Murphy to propose increasing State debt when his administration is sitting on a windfall of billions upon billions in cash that remains untapped. His plan will stick taxpayers with unnecessary debt and interest payments for decades when he should be working to increase affordability."

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Last week, the Murphy administration announced a plan to make $400 million of capital facilities grant funding available to institutions of higher education through four revolving bond programs.

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O'Scanlon pointed to existing State funds that could be utilized to fund the grants without bonding, including:

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-1.2 billion in the current State budget that's intended to support pay-as-you-go capital improvements to avoid new debt issuances. Though appropriated in June, the Murphy administration has failed to present a single proposal for using the idle funds.
-Billions of the $6.24 billion of federal pandemic relief funds sent to New Jersey more than six months ago under the American Rescue Plan Act are unallocated and billions more remain unspent.

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Further, the current State budget (FY 2022) adopted by Governor Murphy projected a 5.1%decline in State tax revenues from last year. The Treasury Department, however, is reporting a 25% increase in actual cash collections year-to-date, a trend which suggests the State’s budget surplus will increase by billions of dollars beyond what was expected.

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"We have billions in the bank that can easily fund a capital program for our colleges and we're likely to have billions more in surplus than we were expecting due to the Murphy administration's inaccurate fiscal projections," added O'Scanlon. "There is absolutely no doubt that we can afford to fund these important projects with the boatloads of unutilized cash collecting dust in the State bank account. Governor Murphy shouldn't borrow a single penny."

Senator Declan O'Scanlon warned that New Jersey could waste tens of millions of dollars on interest payments for Unemployment Insurance (UI) Fund debt if Governor Phil Murphy fails to act by a looming September deadline.

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Sen. Declan O'Scanlon warned that New Jersey could waste tens of millions of dollars on interest payments for Unemployment Insurance Fund debt if Gov. Phil Murphy fails to act by a looming September deadline.

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"It's absolutely ludicrous that Governor Murphy might waste millions on unnecessary interest payments for UI Fund debt when we have billions in federal relief funds sitting in the bank that we could use to repay the debt in full before any interest is owed," said O'Scanlon (RMonmouth), a member of the Senate Budget & Appropriations Committee. "The governor has a short window of opportunity to work with the Legislature to allocate the necessary funds before interest accrues. It makes no sense for Governor Murphy to flush tens of millions of dollars down the toilet when we have the means to act responsibly."

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According to the federal government's Treasury Direct website, New Jersey currently owes$112 million at an interest rate of 2.2777% for funds borrowed to maintain the solvency of the state's UI Fund. As noted in a footnote on that page, the accrual of interest on borrowed funds has been deferred until September 6, 2021.

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The UI Fund debt jumped nearly 50% from last week when a Murphy administration spokesperson said it was $75.2 million.

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O'Scanlon questioned why the Murphy administration continues to refuse to stabilize the state's UI Fund with federal relief funds that have already been provided to New Jersey.

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"We offered a rock-solid plan back in March to use a portion of the $6.5 billion in American Rescue Plan funds that came to New Jersey to shore up our UI Fund and provide relief to struggling taxpayers, workers, and employers," added O'Scanlon. "If implemented, our plan would prevent interest from being paid unnecessarily and stop the $250 million payroll tax increase the Murphy administration will start charging employers in October. Unfortunately, Governor Murphy refuses to acknowledge this rational solution to fix New Jersey’s UI Fund and prevent financial harm to both businesses and taxpayers. We can only guess why."

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New Jersey's unemployment rate jumped last month to 7.3%, nearly 2 points above the national average.

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In an appendix to the FY 2022 State Budget (page 136), the Murphy administration estimated that the UI Fund's deficit -- which would be filled with more borrowed federal funds -- could grow to $931 million by the end of the fiscal year as New Jersey’s economic recovery lags behind the rest of the nation.

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At current rates, the annual interest owed on that debt could top $20 million.

Senator Declan O’Scanlon today voiced dismay that Senate Democrats are dragging their feet on legislation to preserve jobs and help struggling companies while government pressure and COVID restrictions continue to threaten the viability of thousands of New Jersey businesses.

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Sen. Declan O'Scanlon criticized Senate Democrats for failing to act on a bipartisan bill to appropriate $300 million in federal money to help struggling businesses.

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“We’re seeing yet another half-hearted effort by Trenton’s partisan leadership on behalf of forlorn employers,” said O’Scanlon (R-13). “Even with billions of dollars coming in from Washington, the Democrats refuse to take seriously the reality that thousands of enterprises will be lost without immediate help. Businesses have been driven to the brink by government action, and many won’t survive without support. Today was a chance to assist them, and the Democrat leadership failed to deliver.”

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On a day when the Senate Budget and Appropriations Committee was set to vote on almost 20bills prior to Thursday’s voting session, the most relevant measure for the State’s business community was forgotten.

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Conspicuously absent from the committee agenda was a bill appropriating $300 million to help small business and not-for-profit corporations. The measure, S-3457, is sponsored by O’Scanlon, Senate Republican Leader Tom Kean, Senator Mike Testa, and Democrats including Senate President Steve Sweeney, and would appropriate $300 million in federal money to the Economic Development Authority to help save jobs and businesses and grow the economy.

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“It is in everyone’s best interest to save these businesses from going under,” said O’Scanlon. “There’s no time to wait. Every passing day means more employers will reach the end of the line and be forced to shut down and dump their dedicated workers in the unemployment lines.

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“When companies close their doors, it reverberates through the whole economy. The time it takes for the economy to bounce back is extended significantly by job losses and business failures,” O’Scanlon said. “If we can help them remain open for business, recovery can be much quicker.”

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The budget committee approved five other bills appropriating from $10 million to $35 million in federal money to EDA for childcare centers, arts and culture organizations, microbusinesses and food and beverage establishments.

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“These bills are nothing more than a drop in the bucket. Without the $300 million, they don’t come close to covering critical needs,” said O’Scanlon. “S-3457 can deliver the real assistance necessary to help keep businesses afloat. It’s disappointing the Democrats don’t appreciate the seriousness of the situation.”

Senate Republicans Published Comprehensive Budget Plan Last Week

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A week after Senate Republicans publicly distributed a budget resolution detailing a comprehensive plan to update Governor Phil Murphy's proposed FY 2023 State Budget, Senator Declan O'Scanlon called on legislative Democrats to be transparent and share their budget resolutions publicly.

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A week after Senate Republicans publicly distributed a budget resolution detailing a comprehensive plan to update Gov. Phil Murphy's proposed FY 2023 State Budget, Sen. Declan O'Scanlon called on legislative Democrats to be transparent and share their budget resolutions publicly.

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"We're calling on legislative Democrats to be transparent and publicly disclose the changes they've proposed to the state budget as Republicans have already done," said O'Scanlon (R-13), the Senate Republican Budget Officer. "There should be open discussions in our budget committees on all of the proposed changes so the public has an opportunity to weigh in when it matters."

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On May 26, Senate Republicans introduced and publicly distributed a comprehensive budget plan that would provide $8 billion of new tax relief to New Jerseyans, increase the state surplus to $5 billion, more than double proposed debt repayments, and increase legislative oversight of Murphy administration spending.

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Legislative Democrats have not publicly released their budget resolutions, even as the June 30deadline for adopting the state budget nears.

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The Joint Rules of the Legislature (see Page 38) require all resolutions to be submitted at least14 days prior to the passage of the annual budget bill and made available to the public.

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Last year, as in many recent years, the Senate and Assembly budget committees quickly adopted a budget that contained hundreds of millions of dollars of "pork" additions by Democrats just minutes after the final text of the budget was provided to them and without the release or review of all budget resolutions, including those that were incorporated into the final budget.

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"Year after year, the public is shut out of the budget process by Democrats who cut backroomdeals in private, and we often don't learn what changes were proposed or accepted until longafter the budget has been adopted," added O'Scanlon. "It's an undeniable fact that our budgetprocess has been anything but inclusive or transparent in recent memory. I challenge myDemocrat colleagues and Governor Murphy to do better this year. They can start by followingthe rules that require their budget resolutions to be shared publicly."

Urges Lawmakers to Pass The Automated Enforcement Inoculation Act

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Senator Declan O'Scanlon urged lawmakers to pass the Automated Enforcement Inoculation Act to protect New Jersey drivers from predatory fines for out-of-state traffic violations.

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Sen. Declan O'Scanlon urged lawmakers to pass the Automated Enforcement Inoculation Act to protect New Jersey drivers from predatory fines for out-of-state traffic violations.

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"New Jersey drivers are under siege from out-of-state politicians who want drive up costs for travelers for the purpose of making a quick buck,” said O’Scanlon (R-13). "Through bipartisan efforts we fought and defeated camera enforced violations in New Jersey because we recognized that it was nothing more than government-sanctioned-theft. While half of all states have rejected these corrupt schemes, New York has decided to implement them and is doubling down with absurd congestion price taxes. By passing this legislation, Republicans and Democrats can stand together and deter at least one of the many invasive and unjust taxes that New York State is trying to impose on New Jersey families."

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Under Senator O'Scanlon's bill, S-460, the New Jersey Motor Vehicle Commission and other state entities would be prohibited from disclosing the personal information of New Jersey drivers to help another state impose or collect a fine for alleged violations captured by automated camera ticketing systems.

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Senate Republicans criticized plans to increase prices for commuters, calling Manhattan’s congestion prices ill conceived.

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"New York lawmakers claimed that congestion rates and toll increases were solutions for environmental issues, but it's all a corrupt scam to take more money out of the pockets of hardworking men and women who travel to and from the state," O'Scanlon added. "We need to pass this bill now to shut the door on cities and companies from applying predatory fines and unjust taxes on New Jerseyans when they are out of state."

Senator Declan O’Scanlon (R-13) criticized the Joint Budget Oversight Committee (JBOC) for its inaction over the last six months and for allowing inflation to consume more than $500 million of taxpayer money. O’Scanlon’s full statement is below:

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Sen. Declan O’Scanlon criticized the JBOC for its inaction over the last six months and for allowing inflation to consume more than $500 million of taxpayer money.

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“JBOC actions today with respect to the $6.2 billion federal block grant received 19 months ago in May 2021 is around the margins—allocating $2 million to advertise the Anchor Program…and simply shuffling around about a dozen previous allocations to new departments to administer. It's all frittering around the edges while we should be putting this money to good use helping businesses still struggling and wisely investing the money in ways it would provide relief for our beleaguered taxpayers. The fact that we haven’t had the two JBOC meetings required by law over the last six months, and the insulting lack of any substantive action on this agenda, is areal slap in the face to those businesses and taxpayers.

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“Meanwhile, $1.5 billion of the grant has sat unallocated for any purpose whatsoever. And, about $5.2 billion of the $6.2 billion received in May 2021 (including the money that is unallocated) remains in state accounts to this day—moving at a snails pace and having earned1% investment returns with inflation having eaten up more than 10% of the spending power. For those not good at math, that means the buying power of this $5.2 billion sitting around in state accounts has wasted away to the tune of more than $500 million. It’s taxpayer money, and we just set a half billion dollars on fire. Where is the sense of urgency we should be feeling to put the money to its intended good use?!?

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“Republicans have proposed putting funding towards open/transparent/fair local government capital grant programs to address flooding, parks, and infrastructure projects. We have proposed using funds in lieu of tax and toll increases taking effect on New Year’s Day. And, I have been seeking help for a nonprofit social service provider that cares for people who are experiencing life-changing spinal cord injuries. Our proposals have been ignored. But if you won't allocate money to local infrastructure, tax relief for people suffering from inflation, or to help people who truly need help—use it on something else.

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“Governor Murphy slow-walking money given to us courtesy of federal taxpayers is a joke and wasteful.

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“Some of this federal money is being spent without any legislative approval or even a legislative discussion. The Governor—who has been allocated $500 million to spend in his sole discretion—has abused his authority by: buying the Governor and Lieutenant Governor new SUVs; giving criminals leaving jail $4,000 checks; and building permanent bureaucracies with money that will eventually run out. It's absurd.

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“The Legislature has joined in these abuses by using this money for pork in the appropriations act. Examples of this pork include ice rinks and even shoveling $20-70 million to clients of lawmakers to build sports facilities that include cricket and rugby fields, as well as tennis courts. I can only share the obscene $20-70 million range because the purpose of a $20 million pork grant of federal money was disclosed in response to an OPRA request and we know that's what it's being used for. However, the purposes of related grants have never been disclosed to anyone in the public despite Senate rules requiring such disclosure. But, it sure seems like those grants are likely going to the same, single, excessive project. And, that’s just the tip of the opaque pork iceberg.

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“This process of spending federal money is a secretive joke. It blows huge chunks of money on frivolous things, and perhaps even worse…leaves billions of dollars languishing in idle state accounts to be ravished by inflation so more than a half billion dollars of buying power just disappears.

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“JBOC needs to get serious. Oversight has been non-existent.

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“People’s money is being wasted and the majority members of JBOC are complicit. Today’s meeting isn’t oversight at all—it’s part of the problem.”

Legislation sponsored by Senator Declan O'Scanlon that exempts certain school districts from state aid cuts was approved by the Senate Budget and Appropriations Committee.

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Sen. Declan O'Scanlon's bill that exempts certain school districts from state aid cuts was approved by the Senate Budget and Appropriations Committee.

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"Republicans have argued for years that the state's school funding formula needs to be rolled back and reformed to avoid unfair aid cuts and to protect taxpayers in New Jersey. In response to the proposed school funding cuts, a school in my district eliminated necessary student services to make ends meet, which is a direct reflection on the flawed nature of the S2 school funding formula," said O'Scanlon (R-13). "We need to do a better job because many schools throughout the state are suffering from the S2 formula and the supplementary funding that was recently approved is not a long-term solution. This legislation is a small, but much-needed step towards larger reforms that would provide assistance to the Freehold Regional School District to ensure that their students do not lose courtesy busing in the coming school year."

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Since 2020, New Jersey has used a controversial school funding formula known as S2, which was created in 2018 to provide an equitable distribution of aid among school districts throughout the state. Republicans have argued that this formula is deeply flawed and believe that it should be fixed to avoid unfair school aid cuts.

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In March 2023, it was revealed that nearly 200 school districts were losing funds under the proposed 2024 fiscal budget. In response to the proposed cuts, the Freehold Regional School Board voted to eliminate bus routes for students who live within 2.5 miles of the school to save money.

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Senator O'Scanlon's bill, S-3950, aims to freeze school aid cuts for regional schools that meet certain requirements. To receive an exemption under the bill, the district must be regional and compromised of five or more constituent school districts. Additionally, they must spend 15% less in administrative costs per pupil than the statewide average for regional school districts and have mitigated the costs of regionalization.

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The final condition that eligible school districts must meet is to have raised their district taxes up to the maximum limit permitted by law during each of the last five years.

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School districts that receive an exemption to state aid cuts would be prohibited from eliminating courtesy busing for students who reside in their district.

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"Children should not have to put their lives at risk walking to and from school as they would in the Freehold School District if they were to lose their courtesy busing. This bill restores funding for the district so that they can provide necessary transportation for their students" O'Scanlon added. "While this bill doesn't address other school districts that are struggling throughout the state, we have to start somewhere so that we can reach a long-term solution for the state. When you let the little issues pile up, it makes addressing the bigger picture more difficult."

Rutgers Football Players Spent a Half Million Dollars on Food Delivery without Scrutiny

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As “The State University of New Jersey,” Rutgers benefits from a significant annual infusion of public money

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Following a series of reports of questionable spending, Senator Declan O’Scanlon has introduced legislation to combat the abuse of public funds at Rutgers and other public colleges and university in the state.

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Following a series of reports of questionable spending, Sen. Declan O’Scanlon has introduced legislation to combat the abuse of public funds at Rutgers and other public colleges and university in the state.

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O’Scanlon’s bill, S-3243, would direct the Secretary of Higher Education to appoint a special auditor to investigate reports of public money being misused.

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The legislation follows a bombshell report that lavish spending by the Rutgers Football program included more than $450,000 in DoorDash deliveries in a little more than one year. Some athletes ordered food for pets and flowers, and one placed orders in two different states on the same day.

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“I’m a big fan of Rutgers football, but even loyal supporters like myself find it hard to swallow this irresponsible and unmonitored waste of taxpayer dollars,” said O’Scanlon (R-13). “Since the institution can’t or won’t do more to protect our money, my bill will mandate a special auditor to serve as the people’s watchdog. We can’t tolerate taxpayers being treated as cash machines.”

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In January, a report by NJ 101.5 referred to Rutgers athletics as a “huge financial failure,” and claimed Rutgers spent $118 million on athletics, yet generated only $45 million in revenue, as cited in documents the university filed with the NCAA.

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The Daily Targum, Rutgers’ student newspaper, reportedly found numerous excessive expenditures including $12,500 for a “power nap” machine, $3,100 for a television for the football coaches’ office, and $4,692 for 10 laser pointer remote controls for the football staff.

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“Rutgers football is spending money like a big-time program, but they aren’t bringing in big time revenue. Not yet,” said O’Scanlon. “Residents are subsidizing the university with almost a half billion dollars every year. It isn’t fair to over-taxed New Jersey families to throw this money around without accountability or oversight.”

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Under O’Scanlon’s bill, any entity of a public college or university determined by the special auditor to have abused public funds would be required to repay the money to the state, plus be subject to fines for 125 percent the cost of the investigation.

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The money would be used by the Secretary of Higher Education to fund future investigations.

Senator Declan O’Scanlon called for an investigation into the New Jersey Department of Education’s handling of the “Start Strong” testing which they announced to school districts in June with no follow up information until one month later. Districts had until the end of September to administer the new testing.

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Sen. O’Scanlon called for an investigation into the NJ Department of Education’s handling of the “Start Strong” testing which they announced to school districts in June with no follow up information until one month later.

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“This assessment is basically more evidence of the Murphy administration’s out-of-touch mismanagement at the cost of taxpayer money and students’ instruction time. The announcement completely blindsided districts, especially those who didn’t even have their10-month employees on board,” said O’Scanlon (R-Monmouth). “We need an investigation into how much this has cost, and to get answers that the administration clearly doesn’t want to provide otherwise.”

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“On top of that, it’s totally redundant! These schools just did their Student Learning Assessments in May/June. And depending on their grade they could have two or three additional assessments during this school year. DOE needs to explain why this was necessary to begin with.”

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Opposition to the assessment has been widespread from school districts. Superintendents across Monmouth County joined together to express concerns and question the necessity of the Start Strong testing—but their questions apparently went unanswered.

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“What we’ve heard is that the Department has not even been communicating with individuals at the County level, leaving basically everyone in the dark as they scrambled to meet deadlines for a test that’s adding no value to school districts but is sapping their already stretched resources and valuable teaching time,” O’Scanlon continued. “Students and schools cannot afford for the Department to compound the incredible learning loss we’ve seen over the course of the last two years from the pandemic and remote learning.”

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The Department of Education announcement originally informed school districts that the Smart Strong testing must be administered between August 31st and September 30th. On August31st, they extended the deadline to administer the test by three additional weeks.

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“It takes DOE months to review a grant application yet they gave districts about six weeks to learn about this assessment and begin administering. Frankly, DOE simply doesn’t have the resources to be wasting on unnecessary testing when they are understaffed as it is. They are failing to prioritize what the districts actually need, seemingly in favor of devoting an entire team to this absurd testing which leads to another question—how much has this redundant testing cost us?!”

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O’Scanlon sent a letter to the Department of Education asking for answers and justifications for the cost and lack of information inflicted upon school districts.

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“Our schools have faced seemingly endless challenges over the last few years in addition to the pandemic—adjusting to massively unfair funding cuts, more and more mandates constricting precious instruction time, and a serious teacher shortage. To leave them in the dark on a ridiculously redundant new testing program with no guarantee that this is going to happen again? It’s completely out-of-touch, nonsensical, and unacceptable.

Senator Declan O'Scanlon and Senator Michael Testa said Governor Phil Murphy and legislative Democrats have prioritized funding political pork projects at the expense of schools in their FY 2024 state budget proposal.

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Sen. Declan O'Scanlon and Sen. Michael Testa said Gov. Phil Murphy and legislative Democrats have prioritized funding political pork projects at the expense of schools in their FY2024 state budget proposal.

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"It says a lot about their priorities when Governor Murphy and Trenton Democrats have slashed funding to nearly 200 school districts while building a massive budget surplus and funneling boatloads of pork to their cronies," said O'Scanlon (R-13), the Senate Republican Budget Officer. "It's ludicrous to suggest that we can't afford the extra $50 million it would cost to protect every school district from budget cuts when it took us all of 15 minutes to identify nearly $150million of political spending that's being handed out to a favored few in the Democrats' budget proposal. It's a safe bet to assume there are hundreds of millions of dollars of pork in the budget, in addition to the $10 billion surplus, that could be better spent protecting our schools from unnecessary funding cuts that will lead to teacher layoffs."

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Governor Murphy's budget proposal for next year cuts more than $150 million of funding to nearly 200 school districts across New Jersey. After districts warned of the dire consequences of the cuts, Democrat legislators responded with a tepid proposal that would restore just 66% of the lost funding.

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"The remaining cuts will still be devastating to these districts," said O’Scanlon. "There is absolutely no reason to not restore 100% of this funding while we work this year to fix our deeply flawed school funding formula."

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Multiple efforts by O'Scanlon and Senate Republicans to restore 100% of the funding were blocked by Senate Democrats last week.

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"The insinuation from Democrats was that they didn't want to give these districts back too much money because they are going to be hit with even bigger cuts in the fall of 2024," said Testa(R-1), a member of the Senate Budget & Appropriations Committee. "They've made clear that this partial restoration of funding is intended to do just enough to protect vulnerable Democrat legislators through Election Day and nothing more. Democrats have been surprisingly honest that they’re not going to provide relief to these schools once a new four-year legislative term has started in January. It doesn’t matter to them that we have more than enough money to provide long-term relief to every school district that faces cuts both this year and next. Republicans believe we need to fix the school funding formula permanently to address this unfairness going forward."

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O'Scanlon and Testa have identified nearly $150 million of pork spending in the budget (click here for the list) that could be redirected to protect school funding.

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One Democrat town, Bergenfield, is slated to receive $25,000 for its Little League program and$25,000 for its Police Athletic League. Citing it as an example of the political favoritism that's built into the budget, they said it’s unclear why that one town’s sports programs would merit state funding that’s not available to others.

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Similarly, Middlesex County, home to the Assembly Speaker (a Democrat), is set to receive tens of millions of dollars of special funding not available to other counties, including: $20 million to fund a sports complex with cricket and rugby fields and tennis courts; $10 million for Middlesex Community College; $8.5 million for economic development; $8.5 million for other infrastructure; and more.

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"Why are individual towns and counties represented by Democrat leaders and party insiders getting massive handouts in the budget while others with similar needs are getting nothing?" asked Testa. "If they truly believe these types of things should be funded, Democrats should support the creation of competitive grant programs that are open to everyone. Instead of distributing funds fairly, they’re selecting a handful of favored winners they represent to get loads of money while taxpayers everywhere else are stuck with the tab. If these aren't critical needs, we should redirect this money to schools where we know it's needed."

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Testa previously made the case that pork delivered in the current FY 2023 state budget should be reappropriated through merit-based grant programs. He sponsors several pieces of legislation that Democrats have refused to consider that would reallocate the funds through open and competitive processes.

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O'Scanlon noted several additional examples throughout the state where favored Democrat 2 / 3towns are set to get special handouts, including: $12 million for a French art museum in Jersey City; $5 million for a community center in Pennsauken; and $5 million for a music institute in Elizabeth.

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He also pointed to Deal, one of the wealthiest towns in the state -- also represented by a Democrat senator -- that is set to receive $250,000 to fund a playground at a private organization's youth center and $100,000 to fund a ballet company.

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"Art museums, ballet programs, and playgrounds are all great things, but should those be our funding priorities as a state when we're cutting money to thousands of classrooms?" O'Scanlon wondered. "It doesn't make sense to slash funding for art teachers while funding a French art museum that many students will never learn to appreciate. Trenton Democrats should explain to parents, teachers, and taxpayers why these are their priorities."