State's CEO lays down a dose of fiscal reality

Gov. Jon Corzine spoiled another party yesterday by insisting that his fellow Democrats stop spending money they don't have.

The governor was in Atlantic City, where he broke his silence over the Democratic plan to cut property taxes by 20 percent in a speech to hundreds of local government officials and legislators.

His message came down to this: Show me the money.

The governor put it more delicately. But he was again slapping the hands of legislators who were reaching for the punchbowl before the hard work was done.

"I can't support short-term fixes," he said. "Our situation is no different than that of a corporation operating in or near bankruptcy."

He warned against handing out benefits that would have to be taken back in a year or two. He said a "move backward" on fiscal discipline would be a "big mistake."

Sobering words. But there is no denying the facts behind them.

Democratic leaders in the Legislature have promised to deliver their tax relief just in time for next year's election. The problem is they haven't told us how they intend to pay for it.

The governor spoke in a hotel ballroom packed with hundreds of people.

But his real audience was the man sitting next to him, Assembly Speaker Joe Roberts, along with Senate President Richard Codey, who was not there.

The odd thing is that neither man seemed to get the message. Or at least they pretended not to.

"I'm fine with it," Codey said later.

Roberts huddled with aides in a hotel hallway for a few minutes before offering this: "It was a terrific speech. I'd give him an 'A' for sure."

Roberts and the governor ate lunch next to one another on the dais yesterday, whispering and sharing a few laughs. But don't get the idea these two are pals.

Their battle over the budget last summer forced a government shutdown.

They were pretending to be allies then, too, almost until the end. It was pure theater. In this fight, the stakes are even higher. Democrats know that if they fail to deliver on property taxes their slim majority in the Senate could disappear next year.

That would give Republicans veto power over Corzine's appointments and budgets, changing everything in Trenton. This is showtime.

Sen. Leonard Lance, the Republican leader, made the obvious point that any property tax relief Democrats offer before next year's election will evaporate soon afterward if the Legislature doesn't do better.

He sees our Wall Street governor as a needed restraint on the Democrats in the Legislature, and he saw the speech yesterday as vindication.

"Obviously, the governor agrees with me," Lance said.

Among the 98 reforms in the Democratic package, there is much to like. They are talking tough on spending caps for schools and local governments. They are relucantly going along with Corzine's insistence on a state comptroller to root out waste. They are finally moving to end the worst of the pension abuses, and pushing to consolidate schools and towns. All that will help.

But it will not finance the 20 percent credit Democrats are promising. If you ask 10 Democrats where they hope to get that money, they give you 10 different answers.

Ask Roberts, and he acts like a game-show host with a hidden prize behind a curtain. He won't even say how much his plan would cost.

"That's not something I can describe right now," he said after the governor's speech. Maybe Democrats will find a way to honestly cover the cost. But it's more likely they will revert to form, and do something like sell the Turnpike to cover this new spending, leaving the state's crushing debt burden in place.

That would put Corzine in a tough spot. Would he veto a plan, even a shoddy one, that offers voters relief during an election year?

Not likely. Roberts and Codey, no doubt, have thought of that.

Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823.