Closing NJ's budget gap
Wednesday, December 23rd, 2009
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.