New Jersey Gov. Jon Corzine yesterday announced he will utilize $450 million of surplus funds, defer payments, and cut an additional $150 million during the remaining six weeks of fiscal 2009 to close a $1.2 billion shortfall before June 30.
The deficit is due to underperforming revenues. The governor and state Treasurer David Rousseau said April income tax collections were $747 million less than earlier projections. However, calculations from the Office of Legislative Services peg April income tax receipts at $800 million below prior estimates.