Gov. Corzine said today he supports a recommendation to allow illegal immigrants living in New Jersey to pay in-state tuition at the state's public colleges. But he called a proposal to let illegal immigrants obtain drivers' licenses "problematic."

"There are some recommendations, no matter how well intentioned, that cannot be accomplished without a comprehensive policy at the federal level, and drivers’ licenses for the undocumented is one of them," Corzine said in a statement.

His comments came in response to a report by his Blue Ribbon Panel on Immigrant Policy that recommended both of those steps. The panel was chaired by Public Advocate Ronald Chen.

Several states have taken up the drivers' license issue, but only a handful have approved the step. A greater number of states have OK'd in-state tuition for illegal immigrants.

Both ideas come with controversy. A recent Monmouth University/Gannett New Jersey poll found that few people support letting illegal immigrants pay the lower in-state rates. Meanwhile a national group that favors tight immigration controls is ramping up opposition to in-state tuition for illegal immigrants in several states, including New Jersey.

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Much of the coverage of a judge's decision this week on Gov. Corzine's school funding plan rightly focused on the policy implications it could have on education throughout the state, but The Record's Alfred Doblin argues in a column that there was another meaningful impact: it provided a much-needed political victory for the governor.

The opinion largely backed Corzine's effort to tackle one of the most divisive, intractable and influential pieces of New Jersey government. In aiming to revamp the school funding formula, Corzine took on a long-festering problem that impacts schools and property tax bills throughout the state. And he did it in the face of opposition from urban leaders who normally make up his base. The result, if given a final Supreme Court OK, could help middle class suburban districts across New Jersey.

Members of both parties had long complained about a school funding system that sent billions of dollars to 31 historically poor, urban districts, often to the exclusion of the rest of the state. But it took Corzine to develop, and push through, a plan that essentially says that most of those urban areas have enough money already, and that the state should provide more help to other districts that also have needs to be met.

Doblin says Corzine is "trying to create something more equitable" and that "for once" New Jersey isn't just throwing money at a problem.

"What New Jerseyans should note is that "the unfixable" is improving and it's a liberal politician that is doing it," Doblin writes of Corzine's attempts to throw off the constraints of the Abbott v. Burke rulings that required sending more money to those 31 districts.

"Republicans will be hard-pressed to spin this court decision to their advantage. Liberal Corzine came up with an exit strategy out of Abbott," Doblin writes.

Indeed, Republicans praised the judge's ruling that essentially supported Corzine's plan. Advocates for urban schools, meanwhile, say they will be short-changed by the new plan.

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Kathleen Crotty, the longtime executive director for the Senate Democrats and a Statehouse fixture, is retiring at the end of this month.

Crotty, who has worked in state government for more than 40 years, has led the Senate Democrats' operations since 1986.

"Kathy has managed to thrive all these years because of her unparalleled professionalism and innate political skills," Senate President Richard J. Codey (D., Essex) said in a statement. "Along the way, she redefined what it means to be a public servant and raised the bar for everyone around her. Few people, if any, can rival her institutional knowledge. She will be sorely missed, to say the least, but we wish her nothing but the best in her retirement."

Patrick Gillespie, the Senate Democrats' deputy director, will become executive director.

Crotty could be counted on to know the ins-and-outs of just about everything on the Senate's often-busy schedule. There seemed to be few situations that she had not seen before, and when new ones arose, she was quickly on top of them.

Senate Minority Leader Tom Kean Jr. (R., Union), said he sometimes disagreed with Crotty, but praised her work.

"Her love for the institution of the Senate is obvious. In many ways she shaped the Senate and transformed the structure of the organization into its modern form," Kean said in a statement.

Crotty said she felt privileged to have worked with the Legislature and was grateful to its professional staff.

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Two political events yesterday stood in sharp contrast to the grim employment numbers released by the labor department showing that New Jersey lost 19,700 jobs in February, bringing its unemployment rate to 8.2 percent, higher than the national average.

The first took place early in Trenton: hundreds of state workers showed up to protest a vote that gave the state and local governments the ability to impose furloughs. Labor leaders said they were protecting their rights under collective bargaining, but some people who read the story were angered that the furlough plan drew such outrage when so many workers in all sectors are dealing with job losses or unpaid time off.

Later, Gov. Corzine was in Paramus to mark the opening of a new grocery store that would create 350 jobs. It provided a glimmer of hope, but was dwarfed by the losses reported. The visit led to a biting column by The Record's Charlie Stile.

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Republican gubernatorial candidate Christopher J. Christie started his radio advertising campaign today with a 60-second biography spot highlighting his career as a former U.S. Attorney.

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Gov. Corzine's budget took a few hits in the news over the weekend.

The Star-Ledger looked at how at the end of four budgets, the governor will have come up short on several promises on state finances. Rebates won't be as robust as pledged, state debt won't be significantly cut, and the pension fund is still being short-changed, the Ledger wrote, setting up the debate for this fall's election.

Bloomberg News reports that Senate President Richard J. Codey (D., Essex) isn't on board with Corzine's plan to sharply increase the taxes on people earning $500,000 or more. Corzine raised his original tax hike plan to help pay for scaling back his proposal to eliminate the property tax deductions for everyone. Last week Corzine said everyone earning less than $150,000 could keep the deduction, but high income filers would have to pay more to make it happen.

We had our own story looking at how Corzine, after saying the state had a government it could not afford, is eyeing mostly temporary or small-scale budget cuts this year, rather than attacking sweeping reform. Some of the savings he is using to balance this budget could add to long-term costs.

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There's plenty of news and opinion trickling out about the state budget. Here are some highlights from the weekend and just before:

Record columnist Charlie Stile says Corzine may not feel the political impact of axing the property tax deduction that Republicans predict. Stile reasons that even though the deduction suspension can cost families hundreds of dollars in higher income taxes - $219 on average, according to the administration, but far higher for those paying the average $7,000 property tax bill - voters won't know because it will just be another line on their income tax forms, and because they won't feel the hit until next April, five months after Election Day.

Also on the budget, Gannett's Mike Symons reports that colleges may get into the furlough game, too, after receiving a $40 million cut in operating support.

The Star-Ledger focused on a U.S. Supreme Court ruling that might - at least Republicans hope might - force the state to redraw New Jersey's election map. Such a move would be a massive upheaval in a state where most legislative districts are safely tilted to one party, and could reshape who controls majorities in the Senate and Assembly. Josh Margolin and Ted Sherman had the story.

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Two South Jersey Republicans are offering to take a 10 percent pay cut off their $49,000 legislative salaries as part of their efforts to share this year's budget pain with the rest of the state.

Assemblywoman Dawn Marie Addiego and Assemblyman Scott Rudder, both Burlington County Republicans, said the cut would take their legislative pay down to $44,100 and that they have proposed a bill to make the reduction permanent for all lawmakers.

"Every resident of New Jersey is being asked to take a hit to the wallet, and as legislators, we should not be immune. We need to be leading by example,” Rudder said.

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Treasurer David Rousseau fought back today against Republican criticism of the Corzine administration's plans to cut property tax rebates and raise taxes in the new state budget.

While several news stories (including ours) focused on the 500,000 people who will lose their rebates and the fact that some of the same people will also get hit with higher income taxes because they could be stripped of a property tax deduction, Rousseau highlighted the number of people who will still receive benefits.

He said 2 million homeowners will get rebates (counting homeowners and renters). Senior citizens will all get the same level of checks. Some 275,000 people under the age of 65 - those earning less then $50,000 - will also get the same checks as last year, which for them averaged about $900.

Another 230,000 homeowners younger than 65 who have incomes between $50,000 and $75,000 will get checks averaging $700, double what they got in 2005 and 2006, he said.

In recent years people earning up to $150,000 qualified for rebates, but the cut off would be lowered under Corzine's plan.

"The governor stands shoulder to shoulder with the property tax payers," Rousseau said. "Changes in the rebate program were crafted in a way to keep substantial relief in the hands of our seniors and families who are struggling most with the property tax burden."

Much of the attention yesterday focused on a $400 million tax hike that comes from eliminating the property tax deduction. Rousseau said the average savings from that deduction is $219, though the amount varies based on income, ranging from roughly $60 to $900. People making more save more.

In 2006, the last year for which statistics are available, tax filers earning between $75,000 and $80,000 saved an average of $268. Those same people could lose their $1,000 rebates this year. Filers earning between $150,000 and $500,000 saved an average of $525.

Rousseau challenged Republicans to offer better alternatives in a year when state revenues have been hammered by the recession.

"I hear what they won’t do, let me hear what they would do," he said. He said Corzine closed a $7 billion gap between revenues and projected state needs, including raises and inflationary increases. "We put $7 billion on the table, let’s see them put $7 billion on the table and not come in in June at the last minute with, I’m going to say it . . ." he cautioned before using an expletive to describe GOP plans.

Republicans continued their verbal assault on the budget through news releases.

"This governor’s legacy will be an unprecedented impact . . . on lowering the quality of life for middle class New Jersey. Higher taxes. Fewer jobs. Diminishing opportunity, and an increasingly unaffordable cost of living. Governor Corzine has abandoned the middle class taxpayer," Sen. Kevin O'Toole (R., Essex) said in a statement.

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