Tuesday, 10 November 2009

  • New Jersey's Financial Emergency

    Chris Christie, the governor-elect of New Jersey who will take office in January 2010, is considering declaring a financial emergency in his state, according to NorthJersey.com. This would invoke the Disaster Control Act, a law which also applies to hurricanes and such, although Christie's apocalypse is purely fiscal.

    In Jersey, a financial emergency basically endow the governor with superpowers—in the case of Christie, he'd be able to void the agreement his predecessor Jon Corzine made with the Communications Workers of America (CWA), the biggest state workers union. Corzine promised to give CWA members 3.5 percent raises in July 2010 and January 2011, in addition to initiating a layoff freeze through 2010.

    The problem is: Christie has inherited quite the financial mess. The governor-elect needs to come up with a state budget by March, and analysts estimate he'll wind up $8 billion short.

    But in a way, that's the perfect out. Quoth NorthJersey.com:

    New Jersey's Constitution mandates a balanced state budget, so if a budget is not in place or if the spending plan is out of balance, government lawyers believe that is a legal "emergency."

    Corzine declared a similar emergency in 2006, when he mandated a week-long government shutdown after being unable to settle budget disputes with state legislature. Christie has promised to be fair, even if he does invoke Jersey's emergency law.

    But a spokeman for the CWA called Christie's potential plan "dictatorial." And all hyperbole aside, it does seem like a sour note on which to start a governorship.

    Is declaring a fiscal emergency an easy out, or is it Christie's only option? How important is it for a governor to honor agreements made by his predecessor?

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