State Approves $33 Million in Budget Cap Waivers

NJSBA Urges Action on Paid Family Leave

NJSBA Extends Condolences to Bilik Family

State Faces $133 Million Budget Shortfall

New Jersey Tops Nation in Preschool Funding

Calendar

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The budget introduced by Gov. Jon Corzine in February has begun winding its way through the State Legislature’s review process—amid an increasingly bleak outlook in state revenues.

At last week’s hearings before the Assembly Budget Committee, representatives of the State Treasurer’s Office and the non-partisan Office of Legislative Services (OLS) discussed the revenue assumptions in the governor’s proposed budget, which would reduce spending by approximately $500 million below the current fiscal year’s levels.

OLS projected that, based on current information, the additional revenues projected for fiscal year 2008 and shortages for 2009 would yield a $133 million deficit. If the economy continues to worsen, more cuts can be expected in the next budget cycle. Both OLS and the Treasurer’s Office agreed that these numbers are only preliminary, and more reliable estimates will be available after final tax returns are filed on April 15.

To provide the more than $500 million increase in school aid—and reduce state spending by $500 million from last year’s budgeted amount—Gov. Corzine’s budget includes cuts to municipal aid, charity care and higher education, as well as eliminating the Departments of Agriculture and Personnel, and the Commerce Commission.

The Assembly Budget and Senate Budget and Appropriations Committees have scheduled public hearings throughout the state to solicit input on the governor’s Fiscal 2008 spending plan. And last week, the committees began their hearings with various state departments. On April 7, the Assembly Budget Committee will hear from the Department of Education; the Senate Budget and Appropriations Committee will review the education budget on April 10.