The battle was between factions of the Democratic Party that knew each other well and took the conflict to heart - Democrats in the state Senate vs. Democrats in the state Assembly.
In the end, when the state Legislature passed the $27.9 billion 2006 Fiscal Year Budget, Democrats in the Senate and acting Gov. Richard Codey came out on top.
But there were compromises made, giving Assembly Democrats some bragging rights.
"We set a high goal and have achieved it," said Codey in celebrating the budget. "With this budget, the era of spending like there's no tomorrow ends right now. Gimmicks and speculative budgeting are banished to the past."
State Sen. and Bayonne Mayor Joseph Doria called it "a budget that the state can be proud of."
"If fully funded, rebates for seniors ensure that the most vulnerable in the society are not forgotten," Doria said.
The key to the feud was the rebate program, which Codey sought to trim when he introduced the budget in March. Assembly Democrats (who face re-election in November) balked and came up with budget proposals of their own, geared at saving the property tax rebate program, especially for senior citizens.
Saved the rebates A compromise that allowed the budget to move forward, along with reports of better than expected revenues, allowed the rebates to get restored to full level for senior citizens and disabled residences of the state at $1,200 for each homeowner, while slashing in half the rebate to an average of about $300 for other homeowners.
Assemblyman Louis Manzo (D-31st Dist.) believes the restoration was motivated by legislation he sponsored that would have shifted school costs from property taxes to income taxes.
Assemblyman Anthony Chiappone said his support for the budget was contingent on saving the rebates for seniors and the disabled.
"My primary condition to approve the budget was that the Homestead Rebate program be maintained," he said. "Homeowners and seniors have come to rely on these rebates."
Codey and the state Senate were pushing to cut back on several areas in order to provide property tax relief.
The Assembly and Senate Democrats also reached agreements in several other areas, including eliminating a plan to raise $175 million by increasing the number of items that would be subject to the state's sales tax. This was a critical piece in an election year. In 1990, the Republicans successfully swept Democrats out of control in the Assembly using opposition to a similar sales tax increase.
The new budget marginally reduces total spending from $28 billion last year and allocates significant resources to key areas such as $20 million to reopen FamilyCare centers through the state, $40 million in additional funding for mental health care, $120 million in aid to hospitals, a $1 million increase for cancer programs, and $20.6 million in new funding to maintain drug coverage for New Jersey seniors impacted by the new federal Medicare Drug Program.
"It is one of the first budgets in recent years that is actually less than last year's budget," Doria said. "We are funding the programs that matter to the people of New Jersey, and the ultimate beneficiaries will be the taxpayers."
In a bookkeeping maneuver, the Democrats increased property tax relief to the state by $400 million, but the item will be charged to the 2005 budget.
Chiappone said the budget approved no new sales or user taxes, and shielded cable TV and satellite TV subscribers from tax increases.
The budget, according to Codey, calls for $275 million in spending cuts and other efficiency measures, with a workforce reduction of at least 500 state employees through attrition - meaning jobs will not be filled when people retire.
Kenny, who was involved in the final negotiations between the Senate and Assembly along with Assembly Speaker and West New York Mayor Albio Sires, Camden County Assemblyman Joe Roberts, and others, called the budget negotiations "personal and difficult."
"My role was to provide leadership for the caucus and to be a primary negotiator with the governor in private meetings," he said.
"This budget shows what is possible when we commit to being realistic and living within our means," Codey said in celebrating the passage of the budget.
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