Corzine announces more budget cuts

May 14, 2009 12:55:05 PM PDT
New Jersey Gov. Jon S. Corzine will reduce the state's rainy day fund by $450 million, put off making aid payments to school districts until July and trim the state's contribution to the employee pension fund by $150 million to help balance this year's budget. The governor also plans to cut another $150 million from state government with less than two months to go in the current fiscal year.

The cuts are needed to offset an estimated $1.2 billion shortfall in anticipated revenue.

The nonpartisan Office of Legislative Services says much of the shortfall comes from a 40 percent drop in collected income taxes, or about $800 million.

Corzine says his office is negotiating with labor leaders over two furlough days for state workers.

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