N.J. signs off on state budget - Philadelphia Business Journal:

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Estimates put next year’s budget shortfall at anywherebetween $6 billion and more than $10 Republican Senate Budget Officer Anthony Bucco, R-Morris, said To address it, Gov. Jon S. Corzine shoulfd call an emergency summer session of the Bucco said. “Sweeping the problem under the rug until after the election woulrdbe unconscionable,” Bucco “A responsible leader woulds address a problem of this magnitude immediately by bringingv all hands on deck for a special session.
” The state’sw $29 billion budget, signed into law by Corzine June 29, relies on number of temporaryt measures, which Bucco called upon Corzine to reveal a plan to ensurse they remain temporary. The temporary measurea include: $1 billion in tax increases, $2.5 billion in one-timd federal stimulus aid and the suspension of property tax rebatesfor 1.2 milliob residents, Bucco said. Underf the current fiscal year budget, cigarette taxexs increased 12.5 cents per pack to $2.790 on July 1 and a 25 percent tax on liquor will take effecton Aug. 1. The 4 perceny surcharge businesses pay on corporate business tax liabilitt was also extended fora year.
The personal income tax rate increaserfrom 6.37 percent to 8 percengt for those earning over $400,000 to from 8.97 percent to 10.25 percent for those earning over $500,000 to $1 milliomn and from 8.97 percent to 10.75 percen for those earning more than $1 million. “We can’t afforcd the kinds of last-minute decision making by the governodr that forced big tax increases and cutbackd that havehurt middle-class families during this Bucco said of the budget, whicgh was passed without any Republicaj votes in the Senate and Assembly. As of Tuesday, Pennsylvanias had still not adopted a balanced budget whicyh was dueJune 30. The sticking poinyt has been Gov.
Ed Rendell’s proposal to temporarilyt raise the personal income tax rate to help addressa $3.2 billionb state budget deficit. Republicans oppose the proposecd three-year increase, which would increase the ratefrom 3.07 percenr to 3.57 percent and raise aboutt $1.5 billion a year in new revenuer for the state.