NJ Budget, Looking Ahead

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Governor Corzine says he'll announce hundreds of millions of dollars in spending cuts to close a $1.2 billion gap in this year's budget. WNYC's Bob Hennelly has the details.

REPORTER: Officials say cuts are necessary because for two months running, state tax revenues have fallen a half-billion dollars short of projections. The biggest drop came in the state's business taxes, which were 35 percent below the estimate. Treasury officials are bracing for even worse news when December's tax revenues are posted in the second week of January. And they're expecting dismal sales tax revenue from the holiday shopping season. Also yet to be calculated - the loss of income tax revenue from New Jersey Wall Streeters who will see no bonus. Governor Corzine has decided to wait until March to release his proposed budget for next year to see how much help Trenton gets from the incoming Obama Administration. From New Jersey for WNYC, I'm Bob Hennelly.