New Jersey leaders grapple with growing budget deficit; additional spending cuts coming
By APFriday, November 27, 2009
New Jersey stares at worsening budget deficit
TRENTON, N.J. — New Jersey is about to wield a budget ax again on programs and services as tax revenues continue to take a beating.
Gov. Jon Corzine expects department heads to identify $400 million in spending cuts by Tuesday.
Information disclosed to potential investors this week shows the governor also may be planning to freeze or reduce up to $400 million in payments to schools, towns, colleges, hospitals and the pension fund.
A deepening revenue shortfall and additional appropriations have combined to create a deficit projected at $1 billion.
Tax collections for the first four months of the fiscal year were about $410 million lower than expected.
A recent Pew Center on the States report has identified New Jersey as one of nine states whose fiscal problems are as dire as those in California.
