NEWS RELEASE

Governor Jon S. Corzine

January 9, 2008

FOR MORE INFORMATION:

Press Office 609-777-2600

GOVERNOR CORZINE NAMES FORMER CONGRESSMAN BOB FRANKS CHAIRMAN OF FINANCIAL RESTRUCTURING AND DEBT REDUCTION CAMPAIGN
Former Congressman to help lead bi-partisan effort to push forward financial reforms

TEANECK - Governor Jon S. Corzine today named former Congressman Bob Franks Chairman of the effort to push forward the governor’s financial restructuring and debt reduction initiative. 

“A little over seven years ago Congressman Franks was my opponent in the race for U.S. Senate and today he joins us in what could prove to be our most important fight,” said Governor Corzine.  “Bob’s extraordinary leadership skills in this endeavor to help right New Jersey’s financial ship is a shining example of the fact that our financial challenges do not know party lines and that our solutions shouldn’t either.”

In his new position Mr. Franks will help to build support for the Governor’s Financial Restructuring and Debt Reduction Plan all the while reinforcing the fact that this will finally set New Jersey’s finances on the right track. 

“You may ask how a fiscally conservative Republican like myself could find common ground with a liberal Democrat like Jon Corzine,” said Franks.  “The answer is simply that the governor has broken with tradition in Trenton and declared that we have to transform the way we handle the state’s finances.  My grandfather taught me a long time ago that when you find yourself in a deep hole, the first rule is to stop digging.” 

Yesterday, during his State of the State Address, Governor Corzine announced his financial restructuring and debt reduction initiative.  This unique fiscal proposal represents an opportunity for the State to get back on firm fiscal footing for the first time in decades.

The Governor’s financial restructuring and debt reduction initiative calls for state spending for next fiscal year to be frozen at this year’s level, and also ensures that spending will not be able to exceed revenues moving forward.  Governor Corzine’s proposal uses the value in New Jersey’s toll roads to pay down 50% of the State’s debt and permanently fund statewide transportation improvements.  The financial restructuring and debt initiative would also call for all future debt without a dedicated revenue source to be approved by voters.

“The financial restructuring and debt reduction initiative put forward by Governor Corzine has, at its core, the reforms necessary for New Jersey to get back on the right fiscal track,” said Franks.  “These long overdue, common sense reforms should not be held prisoner to partisanship”

Currently, New Jersey has one of the highest debt burdens in the country with $32 billion in bonded debt.  As a result, every man, woman and child in New Jersey personally owns $3,700 of bonded State debt, about three times higher than the national average.  This State debt means that the first $860 paid in individual State taxes goes to interest and debt payments.  New Jersey’s unfounded pension obligations currently stand at $25 billion, with its future health care costs for retirees at $60 billion.  This combination of bonded debt and unfounded liabilities translates to a debt of $45,000 per household.

New Jersey’s Transportation Trust Fund is also currently due to expire in 2011.  Without this funding, potholes cannot be filled, roads cannot be built and bridges cannot be maintained safely.  We would also not be able to buy new buses, add trains or improve transit services, while losing billions in federal transit dollars.

“We need to freeze spending this year and establish controls on the growth of the state budget moving forward,” said Franks.  Applauding the Governor’s endorsement of Senator Lance’s proposal to require voter approval of new state debt without a dedicated revenue source, Franks said, “If taxpayers are going to be responsible for paying off debt, they should be given the authority to approve it.”

Mr. Franks has a long and distinguished career in public service; he has been a leader in New Jersey politics and government for three decades.  Mr. Franks served four consecutive terms as Congressman for New Jersey’s 7th district, which covers parts of Union, Somerset, Middlesex and Essex Counties.  Mr. Franks completed his fourth term in January 2001. 

“I learned during my twenty years in elected office that government yields very slowly, and very painfully, to change,” said Franks.  “Opportunities to really change things in Trenton have to be seized.  If the substance of an initiative will improve our state, we must be willing to see past party, and narrow political considerations.  We rarely get the chance to affect meaningful change.  When an opportunity presents itself, we must act.  This is that opportunity.”

Before going to Washington D.C., Mr. Franks served in the New Jersey State Assembly for 13 years, representing the 22nd district.

In addition to his volunteer role as Chairman of the Financial Restructuring and Debt Relief Campaign, Mr. Franks serves as the President of the Healthcare Institute of New Jersey.

###

Photos and audio and video clips from Governor Corzine's public events are available

in the Governor's Newsroom section on the State of New Jersey web page, http://www.nj.gov/governor/news/

---