NEW YORK, NY February 26, 2008 —Governor Corzine will call for a reduction of the state workforce by roughly 3,500 employees.

Aids to the governor say that for the first time in modern state history, Corzine will propose a budget that spends less than the previous year.

Corzine has identified $1.7 billion in cuts which may include rollbacks in aid to hospitals, colleges and local governments.

The governor says his budget manages to keep state commitments to public education, while maintaining the basic social safety net for the state's most vulnerable residents, expected to bare the worst of the current economic slowdown.

One budget casualty will be the property tax rebates for the state's highest end earners.

For WNYC, I'm Bob Hennelly.

OUTRO: Governor Corzine's proposed budget doesn't include the cost of implementing his proposal to cut state debt and fund infrastructure with hefty toll hikes starting in 2010. Democratic legislators have signaled that plan in its current form will not be enacted.