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The State will continue its effort to reduce the dependence of a few New Jersey cities on special State aid that was supposed to be temporary help for a few years. The old program was known as “Special Municipal Aid,” but last year, this program was combined with Trenton Capital City Aid and Extraordinary Aid. The name was changed to Transitional Aid to Localities with the expectation and requirement that transitional aid is temporary and will be reduced as required reforms are put in place. A total of $159 million in aid was provided to assist 22 cities in fiscal year 2011. This aid program will be cut by $10 million, or 6%, to $149 million in fiscal year 2012. The State will work with cities to restore the integrity of their finances after only a temporary period of emergency help.

Many Urban Enterprise Zones (UEZs) have consistently failed to spend all of the taxes collected within their boundaries each year. Given the unprecedented fiscal crisis, the State needed to use this revenue last year to avert even deeper cuts in aid to schools and communities. This year, the State will again apply that funding to the State’s General Fund. The State will maintain the UEZ tax benefits: the reduced 3.5% sales tax rate and sales tax exemptions on qualified business purchases.

these centers will be diverted to the Division of Child Behavioral Health Services to fund residential care for the affected children.

  • The agency’s Bergen/Passaic area office is merging with the Hudson and

Morris/Sussex offices. The state will save $193,000 by vacating office space in Hackensack.

  • State payments to nursing homes, held flat in the fiscal year 2010 and 2011 budgets, will be reduced by 3%, or $25 million. The State will save an additional $7.5 million by not paying nursing homes to hold patients' beds open for up to 10 days when they leave a facility; however, nursing facilities will still be required to hold these beds for 10 days should the patients return during that period.

  • The remaining $3 million allocated for the New Jersey After 3 non-profit group would be removed from the Budget this year, completing the goal of phasing out State funding and moving the program to financial independence as a self-sustaining non-profit agency. The program now allows 5,000 children to stay after school for three hours to work on homework and conduct other activities.

expected this year, with no reduction in the quality of care, by modifying staff duties, reducing staff by 30 personnel and putting new controls on lab formularies.

The University of Medicine and Dentistry

of New

Jersey has reduced the costs of providing prisoner medical care. An additional $5.3 million in savings is


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