Corzine shares plan to cover $1.2B shortfall

Gov. Jon Corzine says he's come up with a plan to cover an estimated $1.2 billion shortfall needed to get New Jersey through the next six weeks. Corzine plans to reduce the state's rainy day fund by

News 12 Staff

May 15, 2009, 3:33 PM

Updated 5,542 days ago

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Gov. Jon Corzine says he's come up with a plan to cover an estimated $1.2 billion shortfall needed to get New Jersey through the next six weeks.
Corzine plans to reduce the state's rainy day fund by $450 million, put off aid payments to school districts and trim state contributions to the employee pension fund by $150 million to help offset the budget. He says he also plans to cut another $150 million. Those cuts are expected to be announced Friday.
"Every single department will have lower spending this year than it had last year," he says.
Corzine has been catching heat from several groups about his response to the budget issues. Republicans are crying for more spending cuts, while the state teacher's union is criticizing him for the pension cuts and deferments.
"There are no deep cuts," says Sen. Marcia Karrow (R - 23rd District). "I'll tell you tomorrow ? we've been hearing this governor say that same thing for the past couple of months."
"Payments are already at a dangerously low level and every time you defer a payment or cut a payment means you're only going to have to pay more down the road," says Stephen Wollmer, NJ Education Association chief.


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