This is an article from NJ.com, here is a link to the article:
TRENTON — Gov. Chris Christie today will unveil a state budget that is expected to show how he intends to pay the first installment of his proposed income tax cut and how much state aid public schools will get.
The Republican governor will deliver an annual budget speech that kicks off what could be another contentious debate with the Democrat-dominated state Legislature. Last year, Christie sliced about $900 million in programs endorsed by Democrats in finishing a $29.7 billion spending plan.
Mayors, school administrators and residents are hoping the governor will restore some of the cuts he made during the recession. At the same time, Christie will have to chip in far more to the public employee pension system as a result of a reform bill he signed last year. Christie’s office refused to disclose details of the budget in advance of the speech.
Here are several things to look out for:
• Schools: Local school districts have felt the biggest brunt of Christie’s previous belt-tightening. He restored some last year, and most expect him to increase state aid. But the governor may also have something bigger in mind. For months, the Christie administration has signaled it wants to overhaul the current funding formula and perhaps send the issue back to a state Supreme Court that will likely include three of his appointments.
• Property Tax Relief: While his property tax caps helped keep the growth of local taxes to an average 2.4 percent last year, residents have seen a steep increase in the amount they actually pay. That’s because he slashed property tax rebate checks from their 2009 levels to balance the budget. He has slowly restored some of the cuts, but the current average rebate is still less than half the average $1,037 residents saw in 2009. The relief is funded through income tax revenue, which is on the upswing.
• Income Tax Cut: Christie announced a 10 percent income tax cut in January, and today is expected to show how he plans to pay for the first installment. If approved by lawmakers, the cut will be phased in over three years, starting on Jan. 1 of 2013. It would cost about $150 million in the upcoming budget and about $1.3 billion by 2016, according to the Office of Legislative Services. A Rutgers-Eagleton Poll released this morning shows 52 percent of registered voters support the income tax cut plan, but three-quarters would prefer to see a property tax cut come first.
• The Economy: While revenues from key economic indicators like income and sales taxes are growing — up 3 percent — they are still falling short of the administration’s conservative projections. If revenue continues to fall short, it will make it tougher for Christie to spend more on things like property tax relief and school aid.
• Pension: Christie will have to find a way to make a $1.06 billion payment into the state’s troubled pension system. While it represents one of the largest payments in years, it is still well short of the $3.74 billion payment that actuaries say is necessary. The lack of a full payment undermines the boost the system saw from last year’s health and pension overhaul.