New Jersey’s unemployment insurance program expires next week and the state is asking for federal assistance to help cover a shortfall in its $20 billion in unemployment insurance.
The state has been hit hard by the recession, and New Jersey is on track to run out of unemployment insurance next month.
Chris Christie said on Tuesday that he plans to submit his budget proposal for a new year later this week.
If the budget proposal is approved, the state will have less than $8 billion to cover the cost of providing unemployment insurance to people who are eligible.
Christie has said that his budget will cover about half of the shortfall.
The budget proposal includes a $200 million cut in state employee unemployment insurance and a $50 million cut to the state’s unemployment program for low-wage workers.
The Christie administration also wants to save $3.5 billion by eliminating or reducing the amount of benefits received by people who lost their jobs.
That is an estimated $6 billion in lost federal unemployment compensation.
More:New Jersey unemployment insurance benefits expire on March 15.