Newark, the largest city in New Jersey, must now look towards additional spending cuts and tax increases to fill a $70 million shortfall in its $600 million fiscal 2010 budget as the municipal council last week tabled Mayor Cory Booker’s plan to create a new utility authority.

The proposed Municipal Utilities Authority would have given the city an initial payment of $100 million, raised through the issuance of tax-exempt bonds, to help Newark balance its fiscal 2010 and fiscal 2011 budgets. Fiscal 2010 began Jan. 1.

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