At the same time, there are also $70.8 million in increased costs, such as $15 million lapse in tax settlements
State treasurer Andrew Sidamon-Eristoff answers questions during a meeting with the Star-Ledger editorial board.
TRENTON — State Treasurer Andrew Sidamon-Eristoff said today the state will make $303 million in cuts to business development, disability, education debt and other cuts here and there to to deal with what he projects to be a $325 million shortfall for the less than five weeks left in the current budget year.
With income and sales taxes falling short of projections made just a few months ago, the Christie administration proposed cuts including $70 million from business development grants, $19.2 million in higher education loan payments, and $10 million from parks management.
Sidamon-Eristoff said it's "plausible" that the state failed to understand fully the effect of an increased New York state income tax on the amount of money New Jersey was able to collect.
The proposed fixes, some of which require legislation, include "raiding" the state disability benefit fund for $25 million.
"Are raids of these funds a good thing?" asked Sen. Paul Sarlo (D-Bergen), chairman of the Senate budget committee.
"They're a hard choice, senator," Sidamon-Eristoff said.
For the fiscal year that starts July 1, the Christie administration proposed cutting the year-end surplus down to $305 million from $301 million. The budget must be approved by the Democrat-controlled legislature and signed by the Republican governor by the end of June.
Previous Coverage:
• N.J. official says 'obscure provision of New York law' may have caused budget shortfall
• N.J. treasurer unsure if $567M revenue shortfall is caused by extended tax deadlines