State Treasurer Elizabeth Maher Muoio says according to preliminary estimates that the state faces a $2.75 billion dollar budget shortfall in the current fiscal year, and a more than $7 billion shortfall for the next fiscal year as COVID-19 slammed the economy.
The state is hoping to recover some of the shortfall through borrowing and is lobbying for federal aid. While the state has already frozen some spending and Gov. Phil Murphy set aside money for a surplus, it’s not nearly enough to cover the expected shortfall. Maher Muoio says spending priorities will have to be adjusted.