New Jersey Business and Industry Association Vice President of Government Affairs Andrew Musick called for less state spending and no tax increases in his testimony on the FY 2020 State Budget before the Senate Budget Committee this morning.
While noting savings through changes to government employee health benefits and other efficiencies in the proposed budget, Musick also relayed the need for the state to engage in structural reforms that comprehensively address underfunded pensions and rising health benefit costs to address New Jersey's ever-increasing, long-term debt obligations.
"An NJBIA analysis finds the pension liability and postemployment benefit obligation has grown to over $151 billion, which equates to every New Jersey resident paying over $17,000 to cover the cost," Musick said.
"Additionally, the state has experienced a 382 percent increase in long-term debt obligations over the past 10 years, while state expenses have grown 45 percent and revenues have grown only 23 percent in the same time period."
Musick also stated NJBIA's opposition to an increase in the state's Gross Income Tax (GIT) for those earning over $1 million because it will directly impact companies that provide jobs and help drive New Jersey's economy.
He noted NJBIA's concern about the impact the increase will have on revenue during a time of recession, "as a recent report by Moody's Investors Service discussed the dangers of relying on increased taxes on high income earners, especially without serious structural reforms," Musick said.
To read Musick's full testimony, visit here.