NEW YORK, NY February 26, 2008 —New Jersey Governor Jon Corzine's proposed state budget reduces state spending by a half billion dollars but retains his commitment to increase the state’s aide to local public schools.

It was a somber Governor Corzine who stood before a joint session of the state legislature and presented his budget in what he said was a time of a gathering national recession. If the legislature backs the Governor's proposed $32.9 billion dollar budget it will be only the second time since 1955 that state spending was actually reduced from the prior year.

Corzine said every state department took a hit with at least 3,000 state jobs slated for elimination. The state's Department of Agriculture, the Commerce Commission and the state's Personnel Department are targeted for closure. Aid to hospitals, local governments and the state's colleges will also be reduced.

And the property tax rebate program will be reduced for households making over $100,000 dollars and eliminated entirely for families whose income is in excess of $150,000.

The NJ state legislature and Governor Corzine have until the end of June to pass the state budget.

For WNYC I am Bob Hennelly