If the Legislature follows through on Governor Jon Corzine’s pledge not to increase the budget, it would be only the second time in more than 50 years that the State did not increase spending over the year before, NJBIA President Philip Kirschner said today.

Actual State spending, as opposed to the amount appropriated in the State budget, has increased from $243 million in 1955 to $28.775 billion in fiscal year 2006, the last for which actual expenditures are available.  During that period, spending increased every year except 1993, when it decreased by nearly $500 million from the year before.

"In Trenton, spending freezes are very rare," Kirschner said.  "One of the reasons New Jersey is such an expensive State is that government spending goes up pretty much every year, driving the need for ever higher taxes.  If the Governor and the Legislature can pull off a real spending freeze, they will be doing the taxpayers of the State a tremendous service."

"Cutting spending is essential for getting New Jersey’s finances in order," Kirschner said.  "Our budget problems are not caused by a lack of revenue, but by over-spending.  A flat-funded budget would be the first step back to financial sanity."

The last Governor to come close was Richard Codey, who is now the Senate President.  Under his watch, State spending increase by only $200 million, an increase of 0.7 percent.

The following chart was originally prepared in 2005 by NJBIA’s research affiliate, the New Jersey Policy Research Organization (NJPRO) Foundation.  It was updated using data from the State Budget in Brief publications from fiscal years 2006 through 2008.

Actual State Expenditures
Fiscal years 1955 to 2006