Department of the Treasury
to the Legislature today, providing a detailed revenue report that illustrates the devastating impact COVID-19 has had on New Jersey’s finances and laying out plans to close the looming gap for the remainder of the extended fiscal year through a series of deep cuts and spending deferrals.
To help offset the anticipated billions in lost revenue, the administration is proposing significant cuts across nearly all sectors of government. The report proposes decreasing planned spending by over $5 billion, including:
• $1.3 billion in proposed deappropriations;
• $3.2 billion in cut or delayed first quarter appropriations; and
• Withdrawal of $849.7 million in proposed spending priorities put forth by the Governor in February.
Based on the size of the looming shortfall for the upcoming fiscal year, the report notes that without new resources – including the ability to access borrowing facilities or additional federal funding – significant additional cuts will be needed for FY 2021.
Published 4:27 p.m. ET May 22, 2020 | Updated 6:48 p.m. ET May 22, 2020
Treasury: NJ Needs to Cut or Delay $5 Billion in Spending Through September Due to Coronavirus
The state Treasury outlined a plan to take funding from close to $1.3 billion in programs this fiscal year. That includes the Homestead Benefit Program, opioid funding, and senior public college operating aid, most of which it had already placed in a locked account that couldn't be touched. The Legislature still needs to approve these cuts.
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