New Jersey Governor Jon Corzine proposed $2.1 billion in cuts to the state's $32.9 billion budget amid a deepening economic recession, Bloomberg reported.
Corzine said during a conference call, accompanied by four other Democratic governors seeking federal aid, that he's ordered the cuts as tax collections trail projections. Senate Majority Leader Stephen Sweeney, a Democrat from West Deptford, declined to disclose specifics of the cuts following a separate 30-minute meeting with Corzine.
"It's about the reality we are facing and about a very difficult economy," Sweeney said. "It's going to be massive."
Revenue has fallen $1.2 billion below projections as collections of sales, income and business taxes slow. Corzine said he anticipates a $5 billion shortfall next year. Last month, Corzine wouldn't rule out tax increases and cuts to social services such as Medicaid spending.
Scheduled to join Corzine in the conference call were governors David Paterson of New York, Deval Patrick of Massachusetts, Ted Strickland of Ohio and Jim Doyle of Wisconsin.