Remember Captain Renault from Casablanca? He steps into the back room of Rick’s Cafe, and says, “I’m shocked, shocked to find that gambling is going on in here!” A croupier then hands him a pile of money and says, “Your winnings, sir.” That’s how I feel when discussing corruption in New Jersey.
Last week I reported on corruption at the Department of Taxation. Today, courtesy of the TaxProf Blog, we find corruption in the school system. The report shows that administrators are making far more money than what one would expect. The TaxProf Blog then goes on to note that schools in New Jersey are funded by property taxes, and that New Jersey’s property tax rates are among the highest in the nation. The Wall Street Journal has a particularly good critique of this issue in an editorial today.
So what do you suppose New Jersey’s Governor Jon Corzine would do? Promise to stamp out the problem? A fight against corruption? How about a budget full of tax increases? No, he couldn’t have that kind of poor political timing.
Sorry, the cynics win.
“Residents see higher taxes, less relief under Corzine’s $30.9 billion budget” screams AP’s headline in Newsday. The article goes on to detail a $1 billion increase in sales tax (by increasing the tax rate from 6% to 7%), and another $0.8 billion increase in other taxes. To his credit, Corzine also wants to find a few programs to cut ($2 billion in spending on a $31 billion budget). However, while he may be cutting some programs, the budget is, overall, a 9% increase from fiscal 2006’s $28.3 billion.