PJ BLOGGER

NJ’s deficit up another $1.5B; furloughs planned

In big government, new jersey fiscal crisis on February 18, 2009 at 1:20 pm

By MICHAEL SYMONS • GANNETT STATE BUREAU • February 17, 2009

http://app.com/article/20090217/NEWS0301/90217078&referrer=FRONTPAGECAROUSEL

TRENTON — New Jersey’s budget deficit has grown by an additional $1.5 billion in the last month to $3.6 billion this fiscal year, Gov. Jon S. Corzine announced today.
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In response, state officials are planning two unpaid furlough days for state employees, one each in May and June, saving $35 million. State Treasurer David Rousseau said the furloughs can be done without the consent of public worker unions, which have already objected to a proposed salary freeze.

In all, Corzine announced there will be an additional $472 million in budget cuts, $550 million in additional funds from the federal stimulus bill and $335 million in extra funds from state surpluses and trust funds.

The state also plans a tax amnesty program, which will need legislative approval, that would bring the state an additional $100 million.

This year’s deficit now exceeds 10 percent of the original budget adopted last summer. It includes a $2.8 billion shortfall in revenue, a $600 million increase in spending — including a $270 million deposit into the depleted unemployment fund, to avoid an automatic tax hike on businesses — and $135 million extra to repay debt.

“That comes with difficult choices and real pain in a lot of places,” Corzine said.

Revenue in the current budget is forecast at $29.5 billion. Collections for the upcoming fiscal year, beginning in July, are now $28.5 billion, meaning another group of budget cuts can be expected in Corzine’s March 10 budget speech.

http://app.com/article/20090217/NEWS0301/90217078&referrer=FRONTPAGECAROUSEL

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