State departments will face some 850 budget cuts - large and small - to help fill the $1.2 billion hole, but New Jersey Republicans say that's not enough.
Gov. John Corzine announced the cuts Friday. Every state agency is taking a hit from the Department of Corrections to the Department of Children and Families.
"These are unusual, unprecedented times," Corzine says.
State Republican lawmakers argue that Corzine isn't cutting enough. The governor's proposed cuts only amount to $150 million. Corzine proposes using $450 million from cash reserves, and spending $600 million from next year's budget.