New Jersey lawmakers are working on legislation that would allow the state to meet its most pressing needs by tapping into $125 million of funds originally reserved to pay down long-term debt.

Gov. Jon Corzine carved out a $650 million long-term obligation and capital expenditure fund in the current fiscal 2009 budget, which began July 1, from surplus revenue. That fund is designed to pay down state appropriation and general obligation debt in an effort to decrease the state's annual debt service costs and help finance infrastructure needs.

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