Christie faces hurdles over state budget plan

Governor Christie’s new state budget will likely feature a down payment on his signature income tax cut — but he also needs to pay for other promises, including more money for transportation, public employee pensions and last year’s business tax cut.

And he must come up with another $300 million — about twice what his income tax may cost in the budget — to pay down debt that’s left over from the last time New Jersey cut income taxes.

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If Christie spreads that first installment of the income tax cut out equally over three calendar years, the new budget will need about $150 million to offset the lost revenue, non-partisan legislative budget analysts reported earlier this month.

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But that loss of income tax revenue would hit a budget that also has to absorb Christie’s prior commitment to increase the annual payment into the state pension system.

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http://www.northjersey.com/news/state/BUDGETBUSTERS0213.html