NJ looks to lottery sales to solve budget woes

But Treasurer David Rousseau cautioned against freely spending better-than-expected tax collections.

"We cannot and will not forecast that the good times will continue to roll," Rousseau said during a Senate budget hearing.

He said the state will collect $533 million more than estimated for the fiscal year ending June 30, and would collect $159 million less than had been estimated for next fiscal year amid state and national economic woes.

Though the state will get more overall money than expected, Rousseau told legislators who have decried Gov. Jon S. Corzine's proposed spending cuts that the administration is committed to using unexpected surplus to pay down state debt.

The state has $32 billion in debt, making it the fourth-most indebted state.

In the past, lawmakers have used unforeseen surplus on new programs, but Rousseau said, "The practices of the past have led our great state to the brink of financial disaster."

Corzine touted paying down more debt as he looks to fix state finances troubled by high debt and taxes and chronic deficits.

"We are sticking with spending no more than you take in, no new taxes, no gimmicks," Corzine said.

Legislators and Corzine have until July 1 to agree to a budget.