UEZ - AP- Lawmakers Eye UEZ Funds in Budget Crunch

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Lawmakers Eye UEZ Funds in Budget Crunch

TRENTON, N.J. (AP) _ Assembly legislators scrambling to find money to avoid tax increases and program cuts on Thursday eyed $140 million in surplus money held by a program meant to help depressed neighborhoods.

Legislators indicated they might seek to use that money next fiscal year to help balance state spending. Gov. Jon S. Corzine's $31 billion budget plan calls for $2.5 billion in program cuts and $1.9 billion in tax increases to close a deficit that could be as much as $5 billion.

Lawmakers were interested to learn from state commerce officials that the state Urban Enterprise Zone Program has $140 million that hasn't been designated for any projects.

"There's $140 million sitting there," said Assemblyman Joseph Cryan, a Union City Democrat. "Don't spend any more until we look at it."

The state has 32 zones in which businesses are allowed to charge a 3 percent sales tax, rather than the full 6 percent. Under the 23-year-old program, meant to help revive economically distressed areas, money earned within the zones from sales taxes is returned to municipalities for redevelopment. "

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