(Bloomberg) -- New Jersey will cut $1.32 billion in spending for the current fiscal year from a $38.7 billion budget, said Treasurer Elizabeth Muoio.
Details on what will be cut will come later Friday, she said at a Trenton news conference. The state in March froze $920 million in spending as revenue plunged during the pandemic. Muoio said the cuts mostly will apply to municipal aid, property-tax relief, college assistance and other areas.
“There isn’t going to be one easy solution,” Muoio said.
Governor Phil Murphy’s administration expected a $2.75 billion revenue shortfall for the current fiscal year. Neither he nor Muoio would detail how New Jersey will fill the rest of the hole.
The state had improved its financial condition since Murphy came to office, the treasurer said, including boosting the surplus and making the first rainy-day fund deposit in a decade. Covid-19, Muoio said, “stopped this progress in its tracks.”
©2020 Bloomberg L.P.