NEW YORK, NY January 02, 2008 —New Jersey has started 2008 with the 3rd largest budget deficit in the US - that's according to a recent review by the Center on Budget and Policy Priorities.

It found 13 states, including several of the country's largest, face budget shortfalls in 2008.

But, only California and New York face larger gaps than New Jersey's projected $3 billion deficit.

The state's Democrats want to increase state aid for schools by about $580 million in the budget starting July first.