New Jersey Entrepreneur

NEWS RELEASE

Governor Jon S. Corzine

June 28, 2007

FOR MORE INFORMATION:

Press Office – 609-777-2600

HIGHLIGHTS OF THE FISCAL YEAR 2008 BUDGET

This is a property tax relief budget:

Approximately half of all spending in the budget, $16.8 billion, is devoted to property tax relief – a $2 billion increase in relief over last year;

Direct property tax relief to homeowners and tenants is nearly $3 billion – an increase of $1.25 billion over last year;

$2 billion is earmarked for a new property tax relief program for homeowners providing 1.9 million families an average rebate of $1,000 – more than triple the amount non-seniors received in last year’s budget;

The budget includes $251 million for an enhanced rebate program for tenants, increasing rebates to some 550,000 low-income, non-senior tenants from the current $75 to between $200 and $350; and,

The Senior Freeze program is fully funded at $153 million and will provide an average $931 benefit to 164,000 eligible homeowners.

School and Municipal aid are also up:

Every public school district will receive at least a 3 percent increase in state aid – this represents the first major increase in aid to non-Abbott districts in three years;

Aid to school districts represents $11 billion, or one-third of the budget – an increase of $582 million from the FY 07 adjusted appropriation;

The budget provides:

$67 million in aid targeted to districts with low-income students and $26 million to districts that provide full-day kindergarten; and,

$10 million to help districts expand and enhance preschool programs.

The budget provides $2.88 billion in aid to municipalities, counties and other local governments – an increase of $152 million from the FY 07 adjusted appropriations; and,

Almost $2 billion is direct aid to municipalities – an increase of $79 million from the FY 07 adjusted appropriation.

There are NO new taxes in this budget – and substantial tax relief:

By expanding income eligibility for the Earned Income Tax Credit, 300,000 working families in New Jersey will receive $36 million in tax relief; and,

The budget allows the for the expiration of the Alternative Minimum Assessment, Net Operating Losses and Subchapter S provisions of the 2002 CBT reforms – saving businesses approximately $275 million.

The budget protects the most vulnerable members of our society:

$716 million in state and federal funds for Charity Care;

Nearly $40 million in new funding for a three percent cost of living adjustment to community provider organizations that offer vital services to many of our most vulnerable citizens;

$30 million in new funding for community programs that support individuals with developmental disabilities or mental illness;

$10 million for stem cell research grants to maintain New Jersey’s leadership in the face of restrictions on federal grants for this life saving science;

$5.35 million in added funding to address the needs of the autism community;

$5 million for an initiative to improve access to health care for children; and,

* $3.5 million to eliminate the waiting list for the Personal Assistance Service program, which makes it possible for adults with physical disabilities to work, attend school, and engage in their communities.

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Photos and audio and video clips from Governor Corzine's public events are available

in the Governor's Newsroom section on the State of New Jersey web page, http://www.nj.gov/governor/news/