THE BUDGET HIGHLIGHTS BUDGET BASICS W Total proposed budget is $29.4 billion, about the same as the spending plan Christie signed last June, Christie expects tax revenues to increase almost 4 percent, to $29.37 billion, in the fiscal year that starts July 1. |m Total appropriations would be about the ‘same, Christie says they would go down by ‘about 26 percent, but that would happen only if he decides to make a $506 million Pension contribution before the current ‘budget year ends. Doing that would boost the current year spending to $30.2 billion, which also includes federal stimulus money that won't be around next year ‘m Christi says an estimated $10.5 bilion deficits no longer relevant because he isnot ‘ecognizing funding decisions made in the past ands adopting “zero-basedbuxigeting” MEDICAID/HUMAN SERVICES/ HEALTH ‘m Restructure the entire Medicaid program to save $300 million. Move 121,000 toweincome senior citizens and disabled people into managed care plans to provide their health care, prescriptions, home care and medical day Care to save $41.4 million, m Reduce monthly grants and other ben- efits for childless people on welfare to save $31.5 million. mPutmore money toward graduate medi- Ca education, an increase of $30 millon, '™ Close an unidentified public psychiat- ric hospital to save $9 million, Cut state aid to nursing homes to save $37.2 million. § Transfer 130 people with developmen- ‘al disabilities off the statewide housing waiting list, spending $20.4 million, Expand state aid to hospitals for charity care by $10 million, Add supervised community housing for 95 people leaving psychiatric hospitals, ‘and 50 mentally il people Leaving their family homes, adding $10 milton. STATE AID TO SCHOOLS '™ Christie wants to boost state aid to ‘schools by $250 million to $8.12 billion. He cut about $820 million last year. No district would receive an increase larger than 1 percent of its total budget, Aid for school choice and charter ‘schools would more than double to $45.4 million, HIGHER EDUCATION Direct aid to state colleges and universities ($74.1 million) and county colleges ($134.7 million) would not change. ‘m Student financial assistance would be increased by nearly $20 million, and funding for facility improvements would be reduced by $21.4 million, TAX CUTS 'm Change the way the state taxes businesses, which is based on their payrolls, property and sales. Christie ‘wants to assess the levy on sales only, known as the single-sales factor. Phase-in would cut the taxes $24 million in fiscal year 2012 and $98 ‘million annually by fiscal year 2016. ‘Change the estate tax, which now ‘exempts the first $675,000 of a person's assets after a resident dies, Christie Wants to raise that ceiling to $1 milion, ‘= Companies currently can claim a state tax credit on 50 percent of their research and development costs, Christie wants to increase that credit to 1100 percent, a move that would cost the state about $66 million a year if fully implemented, m Reduce by 25 percent the minimum, tax on S corporations, which are ‘owned by no more than 100 share- holders, who are allowed to deduct the companies’ Losses and gains on their income tax statements, 1 Tax cuts would total $199 million for the fiscal year that begins July 1, and ‘$690 millon afters fye-year phase-in, t PROPERTY TAX RELIEF This year Christie turned the property tax rebate checks into direct credits on homeowners’ tax bills. Now he wants to boost the credits, | Funding for credits would increase from $267.2 million to $458 million, a nearly 71 percent boost. That's still ess than half the funding for property tax rebates two years ago. PUBLIC SAFETY '™ State Police would get @ $1.1 million increase, which would help fund a new class of recruits after two years without one. ™ Spends $555 million on the Department of Law and Public Safety, a 1 percent drop from last year. ‘Corrections funding drops 2 percent, to just over $1 billion, EMPLOYEE HEALTH AND PENSION BENEFITS. ‘Says lawmakers should enact revisions he has proposed to make Public employees contribute more to pension and health benefits. 'm Says these changes are needed if he isto increase property tax relief and make a $508 million ‘contribution to the public employee pension fund. STATE AID TO MUNICIPALITIES '™ Direct aid to towns remains the same, at $1.29 billion, '™ Only cut sin transitional aid to localities, $10 million, ‘Christie still calling for lawmakers, to pass “tool kit” to help towns cut Costs end comply with 2 percent Property tax cap The Star-Ledger