Facing Our Future

By 2016, state government in New Jersey faces a shortfall of up to $10.3 billion; municipalities face a shortfall of up to $2.75 billion; the counties face a shortfall of up to $1.1 billion, and school districts face a shortfall of over $1 billion. Those gaps do not include either the $94 billion underfunding of state-funded public employee pension and health benefits systems, including post-retirement medical benefits – or the additional $27 billion in unfunded liability at the municipal and county levels of government for employee pension and health benefits – which may be the single biggest fiscal challenge to New Jersey’s future. As a state – and as citizens – we can no longer sustain New Jersey’s antiquated system for raising and spending money at all levels of government. The effect on public services – including schools, public safety, transportation and healthcare – is severe and will be felt by virtually everyone in New Jersey.

CNJG looked to educate the public about these realities, and to provide an independent, objective analysis of how various government entities in New Jersey raise and spend money. Initial funding for Facing Our Future was provided by William Penn Foundation and a private donor. The Fund for New Jersey, Geraldine R. Dodge Foundation, Nicholson Foundation, The Prudential Foundation, PSEG Foundation, Robert Wood Johnson Foundation and Verizon Foundation provided additional support for the Outreach Program and for Phase II of the project. Facing Our Future was directed by a Leadership Group, comprised of individuals with extensive, senior experience in state government. Research and analysis was led by two highly respected independent analysts, and shows a fiscal crisis spiraling out of control. Using objective budget data, the Facing Our Future analysis shows the complexity and intertwined nature of government programs and spending throughout all levels of New Jersey government.

The hope of Facing Our Future is to educate the public and to foster an informed public discussion. The core questions critical to the discussion – and to our future – are simple: what are our priorities; are we organized effectively and efficiently to deliver on those priorities within all levels of our government; and are we able to fund those priorities?

MATERIALS:
Facing Our Future (Report dated January 2011)

Facing Our Future: Open Letter and Executive Summary (January 2011)

Press Availability Teleconference Recording (February 3, 2011)

CNJG Webinar - Facing Our Future Key Messages (March 4, 2011)

Facing Our Future Handout

Facing Our Future Presentation - Key Messages

RESEARCH DOCUMENTS:
State Budget Research and Analysis

Cover Page (with Section Titles) for State Budget Research and Analysis Section

New Jersey Budget Analysis - The New Jersey State Budget Current Service Projections (FY2012 to 2016)

Exhibit I - Current Service Projection – Scenario #1, Slow to Moderate Revenue Growth

Exhibit II - Current Service Projection – Scenario #2, More Aggressive Revenue Growth

Exhibit III - Notes to Revenue Projections for NJ Current Services Projection

Exhibit IV - Notes to Appropriation Projections for NJ Current Services Budget Projection

Exhibits V - VIII  for Budget History

• Exhibit V - History of State Spending – Expended Amount
• Exhibit VI - NJ State Revenue History: FY2011 Projected Revenue Below FY2006 Actual Revenue
• Exhibit VII - History of State Spending by Category Expended Amount
• Exhibit VIII - Fiscal Year 2006-2011 Appropriations Act Municipal Local Aid and School Aid

Local Government Budget Research and Analyses
Preliminary State-Level Analyses of Municipal Government Ability to Sustain Appropriations at Current Services Levels 2010 – 2016

Preliminary State-Level Analyses of County Government Ability to Sustain Appropriations at Current Services Levels 2010 – 2016

Preliminary State-Level Analyses of School District Government Ability to Sustain Appropriations at Current Services Levels 2010 – 2016