NJ Governor Corzine Directs Cabinet to Cut Additional $400 Million to Maintain a Balanced FY2010 Budget

Calls For No New Spending in Lame Duck

November 5, 2009 -- TRENTON - New Jersey Governor Jon S. Corzine today outlined several measures needed to maintain balance in the FY 2010 budget and fulfill his commitment to maintain a balanced budget through his remaining two months in office.

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"My administration will continue to live up to our responsibility to maintain a fiscally balanced budget during the next two months," Governor Corzine said. "These cuts will be tough but necessary choices that need to be addressed now. Ignoring these issues over the next two months will not make them go away and will only hurt the people of New Jersey. I will not allow politics to stand in the way of doing what is right."

Governor Corzine has directed his cabinet to provide $400 million in savings options to the Treasurer by December 1st in recognition that October revenue collections are coming in below targets and may continue to erode in the months ahead as the national economic recession places pressure on spending for critical safety net programs like Medicaid.

The Governor also directed his cabinet to maintain a hiring freeze and strict restrictions on travel. He also ordered the continuation of the review of all purchases and contracts by the State Treasurer to limit spending to only those transactions that are absolutely necessary.

In addition, the Governor directed the State Treasurer to look at spending in areas that cuts across departments for added savings.

Finally, the Governor is also calling for fiscal constraint during the lame duck session and asking that the legislature not pass any legislation that would result in added spending.

Today's actions build upon actions already taken that resulted in a budget that was $4 billion less than the previous year and mirror the types of steps taken during FY 2009 that resulted in over $2 billion in mid-year reductions.

Source: New Jersey Governor