N.J. Gov warns of growing fiscal problems

New Jersey lawmakers are trying to get a grip on the state’s budget woes. Governor Corzine’s office says he left a surplus when he departed the Statehouse, while Governor Christie says he inherited a big deficit.

New Jersey lawmakers are trying to get a grip on the state’s budget woes. Governor Corzine’s office says he left a surplus when he departed the Statehouse, while Governor Christie says he inherited a big deficit. [audio:100125PGBUDGET.mp3]

The budget director for the nonpartisan Office of Legislative Services says Governor Christie’s projection of more than a billion dollar deficit for the current fiscal year is reasonable.  David Rosen told the Assembly Budget Committee a falloff in revenue from the state sales tax is the big concern.

Rosen: The sales is still very weak, If revenues are down $1.2 billion for the year close to half of that is the sales tax.

Governor Christie says within 10 days he’ll announce spending reductions to close the current budget gap. His team is also working on the budget address he’ll deliver March 16 in which he’ll discuss how to deal with a projected budget deficit for the next fiscal year that could top $9 billion.