Murphy's Law of Budgeting

After intense negotiations with the leaders of both houses of the Democratic-controlled New Jersey state legislature, New Jersey Governor Phil Murphy signed the state budget for the 2018-19 fiscal year into law, averting at the last minute a shutdown that would have forced state offices and parks to close after June 30.  The deal allows New Jerseyans like myself to breathe a sigh of relief after the state experience a major shutdown a year earlier that disrupted just about everything.

Murphy, who has pushed for many liberal initiatives such as strict gun control and a guarantee of Net neutrality from Internet service providers doing business with the state, wants to spend more to improve education and mass transit going forward, and he'll have the money to do it.  There'll be more than $1 billion in revenue from a four-year surcharge on corporations, a tax on people making an annual income of $5 million or more, and even an Uber tax.

Murphy had to give up a few proposals of his in negotiations with Democratic Senate President Steve Sweeney (below, right, with Murphy), such as a sales tax increase from 6 percent to 7 percent and a tax increase on incomes over $1 million.  Sweeney opposed both.

"These long-term commitments require real, reliable, sustainable, long-term revenues," the governor said. "Because of magnanimous concessions on all sides, I am satisfied that the plan we agreed to today, which includes a version of the millionaire's tax as well as a temporary but declining corporation business tax surcharge, will appropriately begin the multi-year process of fixing New Jersey’s fiscal woes in a fair and responsible manner."

Some pundits are already saying that Murphy was the big loser, because he had to give up more.  No, he won.  He secured a plan to put his initiatives and budget priorities in place and got a budget framework for the next three to four years, but more importantly, he avoided a budget shutdown with the Democrats in control of the both houses of the legislature, the Assembly and the Senate, as well as the governorship.  Had there been a shutdown, it would have sent a message that the party is not capable of running New Jersey and lessened chances for the Democrats to retain control of the Assembly in the 2019 midterms more than any tax increase ever could.  Murphy's own ability to govern New Jersey would have been particularly called into question.  And imagine the outrage that would have resulted if the state beaches had been closed this past Sunday in the middle of possibly the worst East Coast heat wave of the decade.  As Governor Murphy noted himself, in recalling the previous shutdown, "A year ago, government shut down and beaches were closed (for most of us, anyway. . .)."

For the record, Murphy didn't follow his predecessor's precedent and go to the beach at Island Beach State Park.  He stayed in and watched the World Cup.

New Jersey Democrats just proved that they can run a state and move it in a progressive direction without Republican obstruction.  That should give Democrats in states where governorships and state legislatures are up for election in 2018 - i.e., most of them - an election campaign boost. 

There's a Fat Man In the Beach Chair

Republican Chris Christie, overseeing his last state budget as governor of New Jersey, triggered a shutdown on July 1 when he failed to get the New Jersey State Assembly, the lower house of the legislature, to agree to an overhaul of the state's largest health insurer, Horizon Blue Cross Blue Shield, that would have required the insurance company to let the state use its surplus for treatment of opioid addiction as a condition for approving a new $34.7 billion state budget.  The state Senate approved the budget but would not approve the Horizon overhaul until and unless the Assembly passed the overhaul as well.  The Assembly would not do so, and therefore would not approve the budget.  Both houses are controlled by the Democrats; their budget has $300 million of Democratic spending priorities that Christie promised not to excise from the budget in exchange for the Horizon reform.

Senate President Steve Sweeney was willing to go along with Christie's overhaul bill but Assembly Speaker Vincent Prieto would not, resulting in a grudge match between Christie and Prieto that produced a government shutdown.  The shutdown closed New Jersey motor vehicle offices and other state services, and it also closed state parks - just in time for the Independence Day holiday period.  As this was the first time Independence Day fell on a Tuesday since 2006 (which is precisely when the state government was last shut down), many New Jerseyans made plans in anticipation of a four-day weekend climaxing with the Fourth that involved going to state beaches.  State beaches, bear in mind, are cheaper than going to municipal beaches and more relaxing.  I can attest to this; I've been to Ocean City, New Jersey in Cape May County, which is situated on a barrier island, and Corson's Inlet State Park in Ocean City, at the southern tip of the island, is far more serene and less hectic than the municipal beaches along the boardwalk and the amusement piers in the northern end of town.

And the state beaches are less costly than the municipal-beach permits.

Be that as it may, New Jerseyans planing to go to the state beaches had their plans upended for much of the holiday weekend.  Christie held firm, but on Monday, July 3, Christie and the legislature reached a compromise that has Horizon return budget surpluses above a capped amount to policyholders in the form of discounts, not spend it on opioid addiction treatment.  Both the budget and the Horizon overhaul bill were quickly passed, re-opening the government.  

So what caused Christie to give in?

Maybe it was this picture of him from Sunday, July 2 at Island Beach State Park with his family and some friends during the shutdown.  

Island Beach State Park, which is on a peninsula despite its name, is the location of the official retreat for the governor - sort of like New Jersey's Camp David.  Christie took advantage of his perks as governor and used the beach at a time when the public was not allowed to.  He flouted his power and his privilege in the faces of the powerless masses who'd been denied their right to use public space.

The optics must have spurred him to cut a deal.  But while the budget crisis is over, the ridicule Christie has had to endure, thankfully, is not.  It's become manna from heaven for Christie's detractors - and there are many, honey! - who know how to use Photoshop.

And here are some of the images these mischievous Photoshoppers have produced.

It was only supposed to be a three-hour shutdown. A three-hour shutdown.

You finally blew it up, eh, Christie?

We seem to be made to suffer.  It's our lot in life.

Just when you thought it was safe to go back into the water . . . the legend continues.

You certainly chose a lovely spot for our meeting.

 Whale on the beach!  He's in the beach chair!

Just hanging out with the crew!

And of course . . .

Time for some traffic problems in Fort Lee.

Christie's arrogance should send his poll numbers down, though it's hard for him to go any lower than his current 15 percent approval rating.  His final term as governor ends in six months.  He's done the impossible; he's actually made me look forward to January!

Christie is set to become the first New Jersey governor to serve two full terms since Tom Kean left office in 1990.  But a lot of New Jerseyans would prefer he leave sooner.