In his recent State of the State address, New Jersey Gov. Jon Corzine made it clear to lawmakers that sacrifice would be essential to address the states heavy financial burdens.
Sounding more like an advocate for free-market ideas than the big-spending liberal hes accused of being, Corzine called for what he termed the asset monetization of state-owned properties. This proposal would allow some state properties to be managed by private entities either through purchase or lease agreements.
Corzine is promoting this policy as a way to literally restructure the states finances by paying down billions of dollars of debt and, in turn, free up billions of dollars of cash flow for capital investment.
Its a smart move for a governor in a state struggling to address a staggering budget deficit and skyrocketing property taxes. These challenges have forced Corzine and New Jerseys policymakers to look for more creative solutions than the typical tax-and-spend proposals offered during fiscally troubling times.
But Corzine also recognizes that not all traditional policies should be disregarded, especially successful, time-tested ones. For example, Corzine wants to restore the states financial credibility using policies that force the state to live within its means and offer tax relief to its citizens.
By proactively calling for lawmakers not to squander the proceeds obtained by leasing or selling some assets, Corzine shows his conviction that spending restraints are necessary for his state to get back on track.
When you hear Kentuckys lawmakers grumble about revenues, ask yourself: Arent there some assets the state doesnt need? Why are they asking me to pay such high taxes when they could sell public golf courses or privatize state parks?
Like New Jersey, Kentucky has plenty of looming fiscal crises and plenty of saleable assets to help alleviate those burdens.
Sources:
New Jersey Governor Calls for Risks and Dreams to Fix States Problems by David W. Chen, The New York Times, Jan. 10, 2007.
Governor Corzines State of the State Address as Prepared for Delivery by Gov. Jon Jan. 9, 2007.
