Testimony of
Carla A. Katz, President CWA Local 1034
Assembly Budget and Appropriations Committee Public Hearing
on the FY 09 State Budget

(as prepared)



Thank you for the opportunity to speak to the Committee this morning. My name is Carla Katz. I am President of CWA Local 1034 representing more than 16,000 working men and women across New Jersey. Last month, Governor Corzine announced a budget proposal which makes more than 3 billion dollars in draconian cuts -- including major cuts to municipal aid and extensive job cuts in state and local government.

I am here to say that CWA Local 1034 vehemently opposes the Governor's budget as proposed including its massive cuts to the state workforce and its cuts to municipal aid, which will mean hundreds, if not thousands, of layoffs of county and municipal workers. Scapegoating public workers and hurting middle class families is not a solution to the state's fiscal problems.
Thousands of job cuts will be devastating to the critical services that our members provide to the public….services which we know the public values.

 

Specifically, the Governor's budget proposes a 'workforce reduction' of nearly 5,000 state employees including 1,890 workers who have left state government and have not been replaced due to as strict two-year hiring freeze; an anticipated 3,000 more jobs cut through layoffs and an early retirement plan with unrealistic backfill cap. Additionally, the Governor's budget proposes a 10.5% cut in municipal aid which will almost certainly mean layoffs in law enforcement, firefighting and township services, especially in the small towns across our state.

 

What exactly is the Governor's budget proposing to cut?

 

The Governor's budget disproportionately impacts certain agencies and does nothing to target political appointees, private subcontractors, high-priced consultants, waste, inefficiency and corruption. Instead, this is a budget which short-sightedly closes state parks---and in doing so threatens our state's $34 billion-dollar-a year tourist industry; it reduces night and weekend hours at motor vehicles offices---and in doing so inconveniences the millions of working people in our state; it eliminates hundreds of staff at Law and Public Safety---and in doing so further weakens an agency many see as problematically understaffed; and it adversely and shamefully impacts such critical programs as employment services for returning veterans from the Iraq war.

 

This budget proposal is not "smart fiscal policy". It is what we call "head count politics". This is a budget which eliminates the Department of Agriculture, an extraordinarily well run agency which proudly and effectively serves the farming community of our "Garden State" with excellence. This is a budget which inexplicably eliminates the Commerce Commission, an agency charged with attracting sorely needed new business and new jobs to New Jersey at a time when our economy is facing recession and more--not fewer--jobs are key to its recovery. This is a budget which specifically attacks the Department of Environmental Protection, demanding a 12.5 percent budget cut and the elimination of 200 to 300 jobs.

 

Our Local represents the majority of the workers at DEP. I can assure you that the agency is still reeling from major cutbacks during the Whitman Administration, when its budget was cut by a third and nearly 25% of its staff were laid off. Those cuts were never fully restored and the hiring freeze in place since 2006 has even further weakened the agency's effectiveness. The proposed Corzine cuts to Environmental Protection will continue to damage the already weakened agency, potentially endanger the public health and prevent the DEP from truly functioning as it should to protect our environment and our State's citizens.

 

At the same time, an incredible amount of state funds are being spent on private consultants--$250,000 spent on a consultant to write the Highlands Plan,--$250,000 spent on a consultant to rewrite the State Plan, ---$1 million spent on a politically connected engineering firm to write a watershed plan…and the list goes on. This work could have been performed in-house for less money and with an eye to protecting citizens rather than the special interests and polluters.

 

As was reported by the Sierra Club, if the state is short on funds why did it eliminate a toxic air tax on polluters that raised $7 million a year for DEP to use for environmental programs that mitigated the damage? Why did the State cut a $700 million-dollar-a-year tax on corporations, resulting in an annual $28 million dollar loss of revenue for the DEP? Why is the state spending more than $100 million dollars a year on temporary employees?

 

At the same time that the Governor's budget proposes to cut thousands of full-time jobs of hard-working state, judicial and local government employees, the state has 8,000 employees on the TES (temporary employee services) list performing their work. Additionally, thousands of political appointees remain on the books and private consultants and subcontractors continue to perform state employee work at significantly higher costs.

 

We call this the 'hidden government' since these political appointments, consultants and temporary workers are hidden from the published 'head count'. Every Governor has boasted of 'reducing the size of the state workforce' by eliminating state worker jobs but then turned around and hired more private consultants and more temporary employees (TES) to do their work under the radar. This 'head count' system is a sham and it ultimately shortchanges the public that deserves quality public services from qualified staff.

 

Our members are dedicated public servants who want to serve New Jersey and to be a part of the solution for our collective success as a State. For decades, our union has opposed short-sighted fiscal policies, such as the State's complete failure to fund the public worker pension for nearly a dozen years. We have continually proposed and supported progressive revenue strategies, identified myriad ways to cut waste and inefficiency, and tightened our belts at the bargaining table. Hard-working public workers-middle class families--should not, once again, be the failsafe scapegoats in the budget process. And finally, the public that we serve should not be penalized for government's failed fiscal past and suffer the brunt of hurtful cuts to public services which will have long-term and negative impacts.

 

Thank you for your time.