The Star-Ledger of Newark reports a spike in jobless claims has exhausted a $260 million infusion pumped into the fund five months ago.
Gov. Jon S. Corzine said the fund has been overwhelmed because lawmakers previously diverted more than $4 billion to cover the cost of state aid to hospitals.
Corzine said the state will either need to put money into the system or get help from the federal government.
Businesses would face an automatic $400 million tax increase in June if the fund continues to decline.
The fund had a balance of $750 million at the end of November.
The fund paid out $169 million last month compared to $138 million in November 2007.
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2 Responses
NJ”s Governor Running out of Ideas to Stimulate NJ’s Economy.
I still haven’t seen 1 politician ANYWHERE recently, make a proposal to CUT SPENDING and/or reduce taxes to stimulate the economy.
all I ever hear is “we are in a deficit, how can we raise revenue?” nothing about cutting spending–from Congress down to the local municipalities.