GOVERNOR ANNOUNCES ADDITIONAL MEMBERS OF FINANCIAL RESTRUCTURING AND DEBT REDUCTION STEERING COMMITTEE

TRENTON - Governor Jon S. Corzine today announced new members of the Financial Restructuring and Debt Reduction Campaign Steering Committee. The most recently announced group consists of leaders in religious organizations, business, government and higher education. These new members will join the 44 existing members of the steering committee, along with former Congressman Bob Franks, and will assist in varying ways to advocate for the financial restructuring and debt reduction initiative, educate the public about the proposal, as well as continue to provide counsel to the Governor.

“I am proud to announce that these new additions to the Steering Committee have come forward to help advance the discussion about the financial emergency facing our state. The financial restructuring and debt reduction initiative will not only pay down state debt, but will also fund transportation projects and infrastructure improvements for a generation,” Governor Corzine said. “These individuals are well versed in the problems facing New Jersey’s transportation network as well as the impact the State's debt has on individuals across New Jersey.”

The following new members were announced today: Bishop Mark Beckwith, Bishop of the Episcopal Diocese of Newark; Geraldine Reed Brown, President, Reed Brown Consulting Group; Chuck Chiarello, Mayor, Buena Vista Township; Rafael E. Cuellar, President/CEO Shop-Rite of Passaic-Clifton; Reverend Bruce Davidson, Director, Lutheran Office of Governmental Ministry in New Jersey; Richard "Buzzy" Dressel, business manager, International Brotherhood of Electrical Workers Local 164;

Edward J. Graham, Director, CEO and President, South Jersey Gas; Dr. George Pruitt, President, Thomas Edison State College; Nils Richardson, President/CEO of ACCSES NJ; and Jose Torres, Mayor, Paterson.

“I am honored to have the opportunity to serve on the steering committee,” said Geraldine Reed Brown.

“The governor has set out a bold new plan which addresses the financial ills that our great state is facing, and will ensure our great state’s long-term financial strength and stability and that New Jersey has a bright and prosperous future. I am proud to offer my assistance in this endeavor.”

“I’m pleased to be a part of this important committee at this critical time in our state’s ongoing financial crisis,” said Mayor Chuck Chiarello. “We need to make the best decisions for the taxpayers of New Jersey and for our state’s long term financial future. I believe that the Governor’s initiative has opened an important dialogue about how best to accomplish that moving forward.”

“I am honored to be asked to help represent the New Jersey faith community, which is committed to making the debate regarding the state’s finances as respectful and reasonable as possible,” said Reverend Bruce Davidson.

Governor Corzine has previously stated that he is open to considering thoughtful alternative solutions to solving New Jersey’s debt crisis and funding transportation infrastructure for a generation. The Governor will work with the steering committee to carefully consider any alternative solutions provided.

The Governor’s financial restructuring and debt reduction initiative calls for state spending for next fiscal year to be frozen at this year’s level, and also ensures that spending will not be able to exceed revenues moving forward.  Governor Corzine’s proposal unlocks the value in New Jersey’s toll roads to pay down 50% of the State’s debt and fund statewide transportation improvements.  The financial restructuring and debt reduction initiative also calls for a constitutional amendment requiring voter approval on any future debt issuance not backed by a dedicated revenue source.

Currently, New Jersey has one of the highest debt burdens in the country with $32 billion in bonded debt.  As a result, every man, woman and child in New Jersey personally owns $3,700 of bonded State debt, about three times higher than the national average.  This State debt means that the first $860 paid in individual State taxes goes to interest and debt payments.  New Jersey’s unfounded pension obligations currently stand at $25 billion, with its future health care costs for retirees at $60 billion.  This combination of bonded debt and unfounded liabilities translates to a debt of $45,000 per household.

Recently an article about the Governor’s proposal in the Record of Bergen County quoted Mark Tenenhaus, a vice president at the credit house Moody’s, stating, “All in all, if the plan is put in place in its entirety, it would address many of the concerns that revolve around New Jersey's general obligation credit rating and its fiscal operations.”

New Jersey’s Transportation Trust Fund is also currently due to expire in 2011.  Without this funding, potholes cannot be filled, roads cannot be built and bridges cannot be maintained safely.  We would also not be able to buy new buses, add trains or improve mass transit services, while losing billions in federal transit dollars. 

Former Republican Congressman Bob Franks has signed on as Chairman of the Financial Restructuring and Debt Reduction Campaign. Other announced supporters include Congressman Rob Andrews, Congressman Rush Holt, the New Jersey Chamber of Commerce and more than 40 previously announced members of the Financial Restructuring and Debt Reduction Campaign Steering Committee. These Individuals are helping to build support for the Governor’s Financial Restructuring and Debt Reduction Plan all the while reinforcing the fact that this will finally set New Jersey’s finances on the right track.  

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Photos from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page.