Christie says he learned of the shortfall in the current state budget just after taking office on Tuesday. He sarcastically called the deficit a "parting gift" from former Gov. Jon Corzine.
The new governor says he'll meet with his new Council of Economic Advisers on Thursday to figure out how to close the gap in the budget that extends through June 30.
Layoffs and furloughs have not been ruled out.
Christie says the cash-strapped state soon could have trouble making payroll.
The shortfall is the result of lower than expected tax collections and added spending.
Corzine identified more than $800 million in cuts to correct for a shortfall earlier this year.
