$812 million in spending reductions
SRAP funding reduced by $47 million
Governor Jon Corzine released on January 5, 2009, a list of $812 million in spending reductions as part of a larger set of solutions to close an estimated $2.1 billion dollar shortfall in the current state budget. Click here to review the full list.
“These reductions reflect an unprecedented, painstaking process in which every department’s budget was scrutinized on a line by line basis”, said State Treasure David Rousseau. He also stated; “Given the state of the economy, we are prepared to continue this process should fiscal conditions warrant further cuts.”
Besides the $47 million dollar reduction is the State Rental Assistance Program (SRAP), other cuts include $15 million in municipal aid and $75 million in public school aid. Some of the spending cuts will require legislative approval.
The reductions also include a freeze on pay raises for all State employees and use of $275 million of the State’s surplus. The budget plan also uses $500 million dollars from the Long Term Debt Reduction Fund. This fund, which was set up to pay down the debt is only funded for $650 million The proposal also counts on an anticipated $300 million from a federal stimulus package.
The money for SRAP was taken from an escrow account dedicated to yet-to-be built housing units.
The Rev. Bruce Davidson, a member of the Steering Committee of the Advocacy Network and the director of the Lutheran Office of Governmental Ministry of New Jersey was quoted in the Star-Ledger as saying. “The good news is that no money is being taken out of ongoing programs and there is not an ‘across-the-board’ cut that would impact all kinds of safety net programs. The risk is that future administrations might cut the rental assistance voucher program back.”
Click here to review the full list. For more details click here to read an article in the Star-Ledger.
As we learn more details about the reductions will post them here.
