Dem: Budget Adjustments Could Total $800M
The head of the Senate Budget Committee says New Jersey is facing significant late-year budget cuts because Gov. Chris Christie’s administration overestimated how much tax revenue the state would receive.
Sen. Paul Sarlo says up to $800 million in fixes will be needed in the next two months to close out the fiscal year with a balanced budget, which the state constitution requires.
The Democrat says lawmakers were notified Monday that the budget would have to be rebalanced again. Downward adjustments were made in February.
There is little money left in the budget so late in the fiscal year.
The state still has $500 million in school aid and the $1.7 billion earmarked for the pension system.
The administration is working on a plan to deal with the shortfall.
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