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State budget taking shape as deadline nears

It calls for extending a utility tax and offering early-retirement incentives to state workers.

TRENTON - A utility tax would be extended, beach-protection money would be used to keep state parks open, and state workers would have greater incentives to retire early under the New Jersey budget now taking shape.

To try to fix chronic budget woes, the $32.8 billion plan would include nearly $3 billion in spending cuts, including less money for property-tax rebates, municipalities, state colleges and universities, and hospitals.

Lawmakers are working to restore some money to Gov. Corzine's proposal, and though a plan has not been finalized, they have introduced legislation and are preparing to move forward as the July 1 constitutional budget deadline nears.

The Assembly Budget Committee has scheduled a 9:30 a.m. public hearing Wednesday on the budget at the Statehouse.

On Thursday, Assembly and Senate budget committees are to consider several budget-related bills in these areas:

Public utilities.

A tax that was supposed to expire at the end of 2010 would be extended through 2013. Rather than being phased out slowly, the tax would be charged at the 2008 rate in 2009, 2010 and 2011. The move would raise $62 million to provide more money next fiscal year for hospitals, Medicaid and nursing homes.

Republicans contend the move would hurt consumers, but Corzine said it would not be a new tax.

State parks.

A plan to keep them open would use $9 million from a beach-protection fund to defray operation and maintenance costs. Corzine had proposed closing nine state parks to save money.

The bill also would require the Department of Environmental Protection to conduct within six months a study of the facilities, services, resources, activities and amenities provided at each state park or forest. The study would seek ways to raise more money, possibly by raising fees.

Retirement incentives.

To cut salary and help reshape state government, the state would offer options to 2,000 workers depending on age and service. Employees would have to be at least 58; Corzine's initial plan called for a minimum age of 50, but legislators considered that too young.

A 58-year-old with 25 years of service would receive an additional three years of pension credit by retiring by Aug. 1, for instance.

Sixty-year-olds who have between 10 and 20 years of service would get an additional $500 a month in their pensions for two years if they retired.

Workers in several departments would not be eligible, including those at psychiatric hospitals, corrections, child welfare and the public defender's office. State college and university workers also would not be eligible.

The bill would also cap the number of workers in the executive and judicial branches.

Prisons.

An effort to cut costs would expand an intensive supervision program under which offenders sentenced to state prison can apply to judges for release into a special monitoring program. To be eligible, applicants must adhere to strict guidelines.

Department of Personnel.

The department would be abolished and its functions moved to the Treasury Department and a new Civil Services Commission.

Commerce Commission.

This state agency, too, would be abolished. Its functions would be moved to the New Jersey Economic Development Authority.

Hospitals.

A fund would be created to provide emergency grants to hospitals facing closure and reduced services due to fiscal distress.