[INSPRATIONAL MUSIC STING] - We're now joined by our good friend, Audrey Lane, who's president of Garden State Initiative, and let me disclose one of our newest partners and underwriters talking about the budget process in the state of New Jersey so people can find out more.

Audrey, great to have you with us.

- Thanks so much for having me.

- Describe Garden State Initiative first.

- So, Garden State Initiative is a nonprofit, nonpartisan think tank, and we look into economic issues in the state and recommend policy solutions for some of those problems we're facing.

So, we look into energy, for example, our school funding formula, or transportation, and really see the impact on taxpayers and how we can maybe improve our policy to make this a better place and a better state.

- And budget transparency is a big part of that, particularly as it relates to is what I believe you call discretionary funding, which is a funny word.

What is budget transparency and how does it connect to discretionary spending?

- So, we intentionally use the word discretionary spending, because there are a lot of terms that are used in this realm and they often have a negative connotation.

We're really trying to be fair and unbiased with regard to our analysis of this, but you'll often hear others used to refer to this as either pork spending or Christmas tree items.

So, this is spending that goes on above and beyond the normal or the prescribed budget process in the state where there's a public process there's a give and take, and there's real analysis by the departments who proposed the budget and public input.

And these are things that are getting taxpayer dollars without that process.

And last year it added up to about $860 million altogether.

- We had Assembly speaker Craig Coughlin on, and we talked about this and he said, "Steve, there's a misnomer about this."

He goes, "Look, we're talking about legislators who fight for state funding for projects in their district that matter and are important."

He said, "So, to call it anything other than legislators doing their job is confusing and not accurate."

You say?

- Well, I say it's a process that's not done in a public way.

And yes, these are all great projects, right?

Everyone wants to buy a new firetruck, but why is this town having a state-funded firetruck and in another municipality that comes from your local taxes?

So, we all pay into the state tax bucket.

Why are some people getting more out of that state tax bucket and some people have to go more into a higher property tax bucket?

And that's really what we're looking at.

- And it's not my job to offer commentary, but as a former state representative, former legislator, who served on the budget committee, the answer to the question, which is not a rhetorical one, is because the legislators who have the ability to get it passed and are in the party of the majority can get it moved.

And those who are not in the majority don't have a lot of those items.

And you don't need to comment on that, but that's just a fact.

That being said, here's the thing that I often think about.

So, the Governor, Governor Sherill, who we just had on, check out our website SteveAdubato.org, it's on the bottom of the screen.

Check out that full half hour we did with the Governor.

A lot of it was about the budget.

Six, excuse me, $60.7 billion budget.

How the heck, Audrey, is the average person expected to understand legislature?

As a former, I served on the budget committee and have the time I was like, "What's really going on here?

I can't follow it."

How's the average person supposed to follow and understand the budget process?

- Well, they can look at NJBudget.com.

They could follow Garden State Initiative.

- NJBudget.com.

What is the difference between that and the overall site for the organization?

- Garden State Initiative is going to focus on a lot of different issues.

We're gonna look at energy policy, school funding formula, transportation, a variety of issues.

NJBudget.com is specific to the budget.

And so, look at both, but we're gonna boil it down and we're gonna look at it.

But to your point, Steve, even legislators aren't necessarily following it, because at the end of the day, and you know this, at the end of the June when the vote comes, you know, when it's called for a vote, oftentimes, the legislators are seeing the final budget minutes, hours right before, and that's hundreds of pages of data.

And so, this is voting on a budget sight unseen.

And so, it's really not fair.

It's something we've been fighting about.

We've been talking about budget transparency, as you know, for a couple of years.

This is a nonpartisan issue and it's something actually, that the Governor has been paying attention to and talking about.

And we're really pleased that there's two issues that we've paid a lot of attention to, both transparency and this discretionary spending that Governor Sherrill is paying a lot of attention to.

- And Audrey's colleague, Regina Egea, who is the chair, if I'm not mistaken, of Garden State Initiative.

Check out SteveAdubato.org.

A previous interview we did with Regina on these issues as well.

Real quick on this.

Energy, the Governor, two executive orders right out of the box, freezing, if you will, energy rates, utility rates.

Your organization, what is it that you expect the Governor to do on energy utility rates, A and B?

What really can a governor do?

- Well, this is, as you know, an issue that is front and center for New Jersey and for us at Garden State Initiative.

What we really need is not to just look at the rates.

We need to look at our energy portfolio and we need to reimagine the New Jersey Energy master plan.

The last update or iteration was done to it at the end of last year, and it really didn't make any substantive changes to it.

It still calls for a fair amount of offshore wind.

It still calls, you know, for a fair amount of intermittent energy, which is fine in itself, but we're lacking the energy we need in our state right now.

- We're at a deficit.

- We're in a deficit.

- Thank you for - We're importing.

- filling in my blank - No, no, no, listen.

- Yeah.

- Because people don't think that way.

Like, "What do you mean there's a deficit?"

Not a budget deficit, it's an energy deficit.

Go ahead, I'm sorry.

- It is, no, thanks for filling in the word there.

But when we have a bigger demand than we have supply, we all know what happens, and the cost goes up.

And the rate payers in the state are really feeling that now.

We need to reimagine the New Jersey Energy master plan.

We need to be realistic about our energy goals, not just environmental goals, but energy goals.

And these two can co-exist and we need to make sure that they do.

- Last question on this.

Tax policy.

When we had the Governor on, and again, check out that very in-depth conversation with Governor Sherrill, it's a full half hour, mostly about public policy, largely about financial budget issues.

The Governor made it clear several times, no tax increase.

Is that a fact that there's no tax increases?

- This is a tricky answer and it depends who you ask.

So, there were no, and welcome to, you know, New Jersey policy and politics, right?

But there were no outright tax increases and certainly, none for the residents of New Jersey.

That being said, there are certain tweaks to the business tax policy that will increase their costs next year.

And so, there were changes to what they can write down, as far as losses.

These will in effect the tax increase on businesses, which will also impact residents and anyone who pays for goods and services in the state.

So, it's semantics and you can answer it how you want, Steve.

- And also Michele Siekerka, the president of the New Jersey Business and Industry Association joined us.

She will answer that question as well.

Hey, Audrey, thank you to you and the team at Garden State Initiative.

We'll have more conversations about fiscal matters in the state of New Jersey.

Thank you, Audrey.

- Thanks so much for your time.

- You got it.

Stay with us.

We'll be right back.

- [Narrator] State of Affairs with Steve Adubato is a production of the Caucus Educational Corporation.

Funding has been provided by The Turrell Fund, a foundation serving children.

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