NJ struggles with worsening budget picture

By: Phil Gregory

Governor Corzine has announced state revenue would be even less than his original projections by $1.5 billion to $2 billion.

By: Phil Gregory

As New Jersey lawmakers grapple with a new state budget plan, the Democratic chairman of the Assembly’s budget committee is hopeful they won’t have to raise taxes. That optimism comes shortly after Governor Corzine announced state revenue would be even less than his original projections by $1.5 billion to $2 billion.
Caption: Assemblyman Louis Greenwald

Listen:
[audio: 090507pgbudget.mp3]

Assemblyman Louis Greenwald says the legislature wants to avoid tax hikes at all costs.

Greenwald: I think tax hikes are the absolute last alternative and I don’t believe we can tax our way out of this problem. I think you’ve seen very little emphasis on that side so far.

The budget committee chairman also does not see any cuts in education funding. Greenwald does not anticipate major cuts in the state workforce , saying going too far with reductions will slow the progress of economic stimulus.

And he says unlike what happened in 2006 there’s zero chance of a shutdown of state government this year because of a budget stalemate.