Closing NJ's budget gap
Wednesday, December 23rd, 2009
By: Phil Gregory
philgregorynews@gmail.com
New Jersey Governor Jon Corzine, and the man who will take his job next month are both taking steps to deal with the state's budget deficit.
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Governor Corzine says $839 million dollars in spending cuts across state government are being made to close a gap in the current state budget.
Corzine says the plan ensures all municipal aid that was budgeted this year will be delivered including a $20 million payment that was frozen earlier this month.
The Governor also proposes that schools be required to use a portion of $260 million dollars in surpluses accumulated by districts around the state, instead of getting state aid payments.
Governor-elect Chris Christie is asking his transition team to come up with plans to cut state spending by as much as 25% in the next budget year.
If spending were to continue at current levels, the state would face a projected deficit next year of about $9 billion.