Corzine: Budget situation is ugly now, and may get worse

March 14, 2008 2:36:28 PM PDT
Governor Corzine may not be finished swinging his budget ax. Corzine has proposed a budget that seeks nearly $3 billion in cuts to property tax rebates, municipal aid, heath care and higher education.

But Corzine says he fears a deepening recession will force him to take another look at the bottom line.

A recession could hit key state tax revenues hard. With businesses and people earning and buying less, tax collections would plummet.

Corzine says a 15 percent decline in activity at state ports is an ominous sign. The state also lost 9,200 private-sector jobs in January, the worst employment month in five years.

Treasurer David Rousseau says the state will get a better handle on tax collections after April's income tax filing deadline.