5. Budget Bluff? It is perhaps appropriate that a week that starts with the budget, ends with the budget. If our politicians in Washington don’t reach a compromise by Friday, mandatory federal budget cuts kick in. According to NJSpotlight.com, the effects of sequestration, as the mandatory cuts are known, will be milder in New Jersey than in other states. New Jersey will see a 5.8% cut in federal grants, while the national average will be 6.6%. The impact on federal spending on salaries will be about be 2.7%, compared with 5.3% nationally. Still, with the economic recovery in New Jersey fragile and the state facing a $3 billion deficit, we need all the help we can get.
