BY MAX PIZZARO- POLITICKERNJ- AUGUST 5, 2010

In the face of Christie administration assessments that his budget forecast is "wildly" inflated, David Rosen, chief budget officer of the state Office of Legislative Services, defended his projections as sober and clear-eyed in testimony to the Assembly Budget Committee this morning.

Rosen's office estimates that the state faces a $10.5 billion structural deficit next year, $3.1 billion bigger than the deficit number offered by OLS in 2009 at the prodding of Republicans. Noting Senate Minority Leader Tom Kean's (R-Westfield) demands on OLS at the end of the Jon Corzine era last year, Greenwald leaped on the projected 2012 figure as evidence that Christie essentially has not delivered significant change or solved the state's budget crisis.

"Last year there were recommendations that Gov. Corzine resign (when the news of the budget deficit was made public)," Assembly Budget Chairman Lou Greenwald (D-Voorhees) said. "What I'm concerned about is all the hoopla this year that we cut $11 billion."

Assuming programs are funded at the same levels in the FY 2011 budget and slow state growth, the state faces a bigger hole this year as last year.

"You and the governor enacted a budget that balanced," Rosen told Assemblyman Gary Schaer (D-Passaic) when asked if Christie's budget did anything to put the brakes on the state's structural problems.

"We're seeing an increasing of 30%. I am correct in assuming the structural deficit of New Jersey was not solved this year?" Schear again demanded.

"We did not reduce the statutory entitlements for programs, so those requirements still remain," acknowledged Rosen, including pension and school funding.

"It's important that we recognize the importance of that statement made by Senator Kean least year that it's important to make plans," Schaer said.

Predictably, ranking Republican Assemblyman Joe Malone (R-Burlington) tried to swing blame back on the Democratic-controlled legislature and away from the governor's office, getting Rosen to admit that solving the problem hinges in part on reining in the "underlying legislation that creates these deficits."

Malone also highlighted the role of the private sector.

"If the market does turn around, this number will decrease?" the Republican asked.

"To some degree," Rosen said.

"I know you'd rather be somehere else," Malone told Rosen at the start of his questioning.

"Correct," Rosen admitted to laughes.

Christie Press Secretary Michael Drewniak later derided Greenwald's budget hearing as a "dog and pony show."

"He again failed to take any responsibility whatsoever for his and Gov. Corzine's failed stewardship over balloning spending and tax increases, which brought us to where we are today," Drewniak said.