KateSpot

HISTORY _ The proposal seeks the second-largest spending cut of any budget in New Jersey history and would mark only the fourth time since 1951 that the budget will be smaller from the previous year.

PROPERTY TAXES _ Property tax rebates for households that earn more than $150,000 would be eliminated. They would be cut by a third for households earning between $100,000 and $150,000 and sliced for renters.

OTHER TAXES _ No new or increased taxes proposed.

SOCIAL SERVICES _ A co-payment for Medicaid is proposed, and the state's FamilyCare program that provides health care for low-income workers faces funding cuts.

HEALTH CARE _ Hospitals face cuts in aid.

SCHOOLS _ Would get a $550 million increase in state aid. The state has been giving schools about $11 billion per year.

LOCAL GOVERNMENTS _ Municipalities face cuts in state aid, which municipal officials contend could mean higher property taxes and police and firefighter layoffs.

STATE GOVERNMENT _ Proposes cutting about 5,000 jobs through early retirements and layoffs for state workers. The agriculture, commerce and personnel departments would be eliminated.

LESS SERVICES _ State parks and motor vehicle agencies would see reduced hours.

HIGHER EDUCATION _ State colleges and universities face aid cuts

FINISH LINE _ Nothing is official until the Legislature adopts a plan and Corzine signs it. A plan must be approved by July 1.

TOLLS _ Corzine also seeks to increase highway tolls to pay state and fund transportation, though that plan is separate from the budget.

NEXT YEAR _ A $1.7 billion budget deficit is projected for 2009.