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From the NJ State Chamber of Commerce:

Governor Announces $3.6 billion in Cuts and Actions to Balance Budget

Governor Jon S. Corzine announced yesterday a total of $3.6 billion in budget cuts and other actions to keep the state budget balanced in the wake of further declining revenues resulting from the economic crisis. State revenue collections for January fell $526 million - nearly 18 percent below projections. Through January, total revenues are now $1.33 billion under projections for fiscal 2009, which translates to a $2.8 billion shortfall by the end of the fiscal year. Fiscal 2009 spending levels are now expected to come in at $31.6 billion, more than $4 billion less than projections when the budget process began last year.

Now, Governor Corzine said, the combination of a $2.8 billion shortfall and an additional $800 million in needed spending requires a total of $3.6 billion in cuts. Among additional spending needs is a replenishment of the Unemployment Insurance Trust Fund to prevent a statutory tax increase on employers of nearly 25 percent - a trigger that the Governor says would further threaten the state's economy.

The budget cuts and other actions Governor Corzine announced include:

  • A requirement that all state employees take two unpaid furlough days in May and June, saving $35 million;
  • Redirecting $160 million in balances from dedicated funds to support programs currently supported by general taxpayer funds. About half of these funds will be used to help avoid the Unemployment Insurance tax increase;
  • Requesting the Legislature to enact a Tax Amnesty Program, which is expected to generate $100 million; U
  • tilizing $500 million that was previously set aside for debt relief and $200 million available from the Fiscal Year 2008 budget surplus;
  • Accessing $450 million from the Rainy Day Fund.

In addition, the state is expected to receive about $850 million from the federal stimulus package that can be used for the fiscal 2009 budget. Governor Corzine said these cuts, cost reductions and other actions are expected to total $3.6 billion, which will allow the state budget to remain balanced with a $150 million surplus.

Source: Governor's Office

New Jersey's Share of the Federal Stimulus Package

The following information, from the U.S. Senate Democrats and today's Star-Ledger, gives some specific information on how the federal stimulus package will benefit New Jersey . As more details become available, we will pass them along.

New Jersey will receive dollars in the following areas:

  • $1.1 billion in state fiscal stabilization aid to avert layoffs in public schools and modernize schools and college buildings;
  • $651.8 million for highways and bridges. This money could also be used for rail and port infrastructure at the state’s discretion;
  • $524.2 million in Transit Formula Funding for investments in mass transit;
  • $361.5 million for special education funding, raising the federal contribution for special education to roughly 40%;
  • $296.5 million in Supplemental Nutrition Assistance Program (SNAP) benefits (formerly food stamp program);
  • $253.3 million in Title I funding for poor school districts;
  • $208.1 million in new Unemployment Insurance funding;
  • $162.6 million for Clean Water State Revolving fund to address the backlog of clean-water infrastructure needs;
  • $121.9 million from Weatherization Assistance Program for low-income families;
  • $104.7 million from Public Housing Capital Fund to fund capital projects at public housing projects;
  • $74.8 million from State Energy Program funding energy efficiency projects for cities, towns and counties;
  • $60.8 million in HOME Funding to build affordable housing and provide rental assistance for poor families;
  • $49 million in grants to support law enforcement efforts, such as drug courts and gang prevention;
  • $43.5 million from Drinking Water State Revolving Fund to address the backlog of drinking water infrastructure needs;
  • $41.1 million from Homelessness Prevention Fund to be used for short- or medium-term rental assistance, first and last month’s rental payment or utility payments;
  • $34.1 million in Child Care and Development Block Grants to provide quality child-care services for low-income families;
  • $27.6 million in Community Services Block Grants to local agencies for services to low-income families;
  • $26.5 million in Dislocated Workers State Grants, particularly training and grants aimed at addressing shortages of skilled workers;
  • $21 million for Department of Labor Youth State Grants;
  • $12.8 million for Head Start expansion of programs;
  • $12.7 million in education technology funds to purchase modern computers and software and provide professional development to ensure the technology is used effectively in the classroom;
  • $10.8 million in State Employment Service Grants to match unemployed individuals to jobs;
  • $9.5 million for DOL’s Adult State Grants program;
  • $9.5 million for vocational rehabilitation to help individuals with disabilities to prepare for and sustain employment;
  • $4.6 million in Violence Against Women Grants to help victims in need of housing assistance and other support services;
  • $2.8 million for Emergency Food and Shelter Program, providing grants to local nonprofit groups providing emergency food and shelter for the homeless;
  • $2.2 million for senior meals programs;
  • $2.2 million for the Emergency Food Assistance Program;
  • $2 million for National School Lunch Program Equipment Assistance; and
  • $986,810 in Internet Crimes Against Children Grants to help law enforcement improve investigations into Internet users seeking to sexually exploit children.