Christie goes after the public-employee unions

George Will writes about how Gov. Christie is Bringing Thunder-ous change to New Jersey

He inherited a $2.2 billion deficit, and next year’s projected deficit of $10.7 billion is, relative to the state’s $29.3 billion budget, the nation’s worst. Democrats, with the verbal tic — "Tax the rich!" — that passes for progressive thinking, demanded that he reinstate the "millionaire’s tax," which hit "millionaires" earning $400,000 until it expired Dec. 31. Instead, Christie noted that between 2004 and 2008 there was a net outflow of $70 billion in wealth as "the rich," including small businesses, fled. And he said previous administrations had "raised taxes 115 times in the last eight years alone."

So he closed the $2.2 billion gap by accepting 375 of 378 suggested spending freezes and cuts. In two weeks. By executive actions. In eight weeks he cut $13 billion — $232 million a day, $9 million an hour. Now comes the hard part.

Government employees’ health benefits are, he says, "41 percent more expensive" than those of the average Fortune 500 company. Without changes in current law, "spending will have increased 322 percent in 20 years — over 16 percent a year." There is, he says, a connection between the state’s being No. 1 in total tax burden and being No. 1 in the proportion of college students who, after graduating, leave the state.

Partly to pay for teachers’ benefits — most contribute nothing to pay for their health insurance — property taxes have increased 70 percent in 10 years, to an average annual cost to homeowners of $7,281. Christie proposes a 2.5 percent cap on annual increases.

Challenging teachers unions to live up to their cloying "it’s really about the kids" rhetoric, he has told them to choose between a pay freeze and job cuts. Validating his criticism by their response to it, some Bergen County teachers encouraged students to cut classes and go to the football field to protest his policies, and a Bridgewater high school teacher showed students a union-made video critical of him. Christie notes that the $550,000 salary of the executive director of the teachers union is larger than the total cuts proposed for 190 of the state’s 605 school districts.

It’s been done before:
Jennifer Rubin:

Christie is taking a page from another northeastern Republican (and another former federal prosecutor) who when he came into office was told he had to raise taxes, but proceeded to show that budget discipline and tax cuts could revive the greatest of American cities. Rudy Giuliani became a conservative rock star and New York came roaring back. If Christie pulls this off, he will not only elevate himself to the top tier of Republican politicians; he will also point the way to taming state budgets (California, are you paying attention?).

How far will Christie be able to implement changes while in a political atmosphere where unions like the SEIU are ascendant at the White House?

We shall soon find out.

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