Men who receive erectile dysfunction drugs through Medicaid or the state Pharmaceutical Assistance to the Aged and Disabled program would no longer have their prescriptions covered.
And businesses are being asked to contribute more in payroll taxes to replenish an unemployment benefits fund that has been depleted as jobless lines grow.
Such changes are inevitable because New Jersey is dealing with a national recession that is crippling state revenue collections, the governor said while presenting his $29.8 billion spending plan to the Legislature last week.
Spending for the next fiscal year, which begins July 1, would have to go up $7 billion to maintain all programs and services without any changes, he said. The state instead will reduce spending by about $3 billion.
Some budget proposals, including eliminating rebates for homeowners who make more than $75,000 and are not senior citizens or disabled, were outlined by Corzine last week. The others are detailed in a lengthy budget document released by the state Treasury Department.
They include the proposal to save $3.3 million by ending Medicaid and state coverage for erectile dysfunction drugs, something the federal government stopped doing in 2005. It's unclear how many residents this would affect.
An additional $1.4 million would come from new co-payments charged to 7,500 AIDS/HIV patients who receive free medication through a state program for people who make too much money to qualify for Medicaid or other assistance.
"In terms of how individuals would be affected, Governor Corzine has made it clear that despite the $7 billion shortfall, the administration would make every effort to protect the most vulnerable," said Donna Leusner, a spokeswoman for the state health department, which administers the AIDS/HIV program. "He has also made it clear that this is a crisis that affects all citizens, and that while we seek to minimize the burden on the most vulnerable through this budget, all citizens must share some responsibility for balancing our finances."
 
COSTLIER TITLES
Residents who pay for Motor Vehicle Commission services also would contribute more. The budget is counting on using $20 million from proposed fee hikes to pay for other state services. The increased fees would apply to vehicle and boat titles, motorcycle registrations, commercial driver's license permits and driver-improvement programs.

The commission, which had planned to use that $20 million for its own operations, will try maintain its services, said agency spokesman Mike Horan. Last year the MVC eliminated evening customer-service hours in response to a budget cut.

The business community is getting hit with a payroll tax increase that will cost about $80 a year for each employee. Last year Corzine used $150 million from the budget to prevent the tax hike, but he said he can't do that again.
The higher tax could force companies to reduce salaries or cut employees -- putting them in line for the same unemployment benefits the tax supports, business leaders say.
"Businesses must operate profitably in order to survive, whether that means additional job cuts or pressure on other costs," said John Galandak, president of the Commerce and Industry Association of New Jersey.
The budget also cuts a $1.5 million subsidy that pays for programs primarily supported by hunting and fishing license fees.
The direct state funding is being reduced because license sales are generating enough to fund the programs, Treasury spokesman Tom Bell said.
Hunters, anglers and trappers -- a group that totals at least 650,000, according to the New Jersey Outdoor Alliance -- are growing frustrated by program cuts and by the diversion of millions of dollars in sales tax revenue from their equipment purchases, said Anthony Mauro Sr., the alliance chairman.
Sportsmen fear more increases in license fees or cuts to programs they count on. "It's just an issue that's adding to a powder keg," Mauro said. "That's how I see it."
There are no plans to close state parks -- something Corzine proposed last year -- despite new cuts planned for the state Department of Environmental Protection, spokeswoman Elaine Makatura said.
But Jeff Tittel, director of the New Jersey Sierra Club, said it will be hard to avoid closing parks and historic sites given the size of the budget cut.
"There will be real consequences if the governor goes through with this budget," Tittel said.


Statehouse Bureau reporter John Reitmeyer may be reached at reitmeyer@northjersey.com.

Anthony P. Mauro, Sr.
Chairman,
New Jersey Outdoor Alliance: "Because a lot happens behind our backs while we’re enjoying the outdoors."
www.njoutdooralliance.org

NJOACF Council Members:
Reef Rescue * NJ State Federation Sportsmen’s Clubs * Jersey Coast Anglers Association * Recreational Fishing Alliance * Trout Unlimited * National Wild Turkey Federation * NJ Beach Buggy Association * Hudson River Fishermen’s Association * United Bow Hunters NJ * New Jersey Council Diving Clubs * NJ Trappers Association * NJ Forestry Association * Society of American Foresters * Quail Unlimited * Ruffed Grouse Society * National Animal Interest Alliance Trust * Greater Point Pleasant Charter Boat Association * NJOA