Budget discord back in Trenton Senate, Assembly leaders disagree on Corzine's tax hike plan. Sunday, June 18, 2006 • By TERRENCE DOPP • The Express-Times TRENTON | When then-Gov. Richard Codey proposed eliminating property tax rebates last year, he touched off a round of political infighting. Assembly Speaker Joseph Roberts, then majority leader, was among the most vocal critics. The result was a high stakes staring match between those who said New Jersey couldn't afford the $1 billion plus program and those who called it a bone for homeowners saddled with tax bills averaging $6,000. After Codey restored $1,200 rebate checks for seniors and produced partial rebates for the middle class, all walked away claiming victory. The result: When Codey signed his $28 billion state budget three days into the current fiscal year, it was the latest approval since the state added a balanced budget amendment in 1947. The two leaders have conflicting aims as the Legislature's July 1 deadline nears for Gov. Jon Corzine's planned $30.9 billion budget. Legislators have scrambled to find spending cuts to pare down Corzine's $2 billion in proposed tax increases, anchored by a 1 percent sales tax increase. Codey has called the hike the only responsible option to close a $4.5 billion shortfall this year and improve shaky state finances. Roberts, meanwhile, has called defeating it his No. 1 priority and deemed it the single most controversial budget item. "We don't agree on everything. But we have worked closely together," Roberts," D-Camden, said this week. "The process has been smooth and productive and respectful. We have some differences but they get resolved." The scorecard for the sales tax hike has changed. Democrats privately said at least 43 of the 45 Democrats in the 80-member lower house will vote against the new sales tax rate. In the 40-member Senate, up to 17 Republicans have expressed opposition. Injecting uncertainty into the debate are two provisions in the state constitution. One sets a July 1 deadline for budget adoption. Another requires any taxation bill to be approved in the Assembly before it moves to the Senate. Elected officials and observers called a potential government shutdown due to a late budget overblown and unlikely. Codey said talk of a rift between the two is predictable each year. Both he and Roberts said they and others in the Legislature meet continuously and are working to smooth over differences. But this week Codey still said he would push the tax plan, while he opposed other increases such as a $430 tax on the state's hospital beds. "We need to do it. We need to bring in over a billion dollars. But I haven't heard (an alternative) yet," said Codey, who added despite any competing agendas he and Roberts maintain communication. "I support the governor," Codey added. All sides declined to give specifics of any talks. When asked whether any progress had been made, Corzine's spokesman said "we're closer today than yesterday." Assembly Minority Leader Alex DeCroce, R-Morris, doubted how far any cooperation between Roberts and Codey truly extends. "Right now, it certainly doesn't appear the Democrats are on the same page," said DeCroce. "For the sake of New Jersey taxpayers I hope they can get their act together, and produce a fiscally sound budget that doesn't hike taxes." Roberts disagreed with the DeCroce assessment of the situation. "Last year was a strange situation. This year is totally different," he said. "This year has been a very good experience." One Rider University political science professor said tension over the fate of Corzine's budget with so little time left before the clock runs out is indicative of a larger power struggle. "It's really the Democratic triumvirate of Corzine, Codey and Roberts. And clearly Corzine is not going to get everything he wanted," said David Rebovich, director of Rider's Institute of New Jersey politics. "We've reached the start of a yes or no situation. And it's hard to imagine any of this leading to any kind of magic compromise out there. It's too much money involved." Terrence Dopp is Trenton correspondent for The Express-Times. He can be reached at 609-292-5154. © 2006 The Express-Times. Used with permission.