Gov. Jon Corzine last week announced that New Jersey's current deficit increased to $2.1 billion, up from earlier shortfall projections of $1.2 billion due to underperforming revenues, and called for $800 million of mid-year spending cuts to help balance the $32 billion fiscal 2009 budget.

In addition, the administration will take $500 million from the state's $650 million debt defeasance fund to help close the shortfall, according to budget update documents.

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