Burnett: WHAT DO YOU DO IN NEW JERSEY? YOU'RE IN THE MIDST SAYING I WANT TO RAISE TOLLS, CUT JOBS AND CUT SOME SERVICES. SO IT WOULD SEEM ACCORDING TO TRADITIONAL ECONOMIC THEORY, THIS IS THE WRONG TIME TO DO ANY OF THOSE THINGS.

Corzine: I AM NOT FOR RAISING TAXES IN ANY IMMEDIATE TIMEFRAME AND EVEN THE TOLL PLAN THAT I TALKED ABOUT WAS NOT SUPPOSED TO BE IMPLEMENTED, IT WOULD NOT BE IMPLEMENTED UNTIL 2010. IT WAS ACTUALLY TAKING INTO CONSIDERATION WEAKNESS IN THE ECONOMY WHEN WE LAID IT OUT. THE POINT IS THAT I THINK THAT WHAT WE NEEDED TO DO, WE NEED TO DO IS BE ABLE TO GET THROUGH THIS BUMP. I LOVE TO BE ABLE TO HAVE A STIMULUS PROGRAM AND IN FACT, OUR TOLL PLAN WOULD HAVE ACTUALLY PUT PEOPLE TO WORK BY WORKING ON OUR INFRASTRUCTURE. THAT IS NOT GOING TO HAPPEN IN THE SHORT RUN. THE REALITY IS I DON'T HAVE THE VOTES IN THE LEGISLATURE TO MAKE IT HAPPEN. SO WE'LL PROBABLY HAVE TO RESHAPE IT. WE'RE NOT GIVING UP ON IT, BUT WE'LL HAVE TO RESHAPE IT, BUT THE MOST IMPORTANT THING WE HAVE TO DO RIGHT NOW IS GET SPENDING DOWN. ALMOST $3 BILLION FROM LAST YEAR'S LEVEL PLUS INFLATIONARY GROWTH AND THAT'S A HUGE, HUGE LIFT WHEN STATES ACTUALLY SHOULD BE SPENDING MONEY TO STIMULATE RIGHT NOW.

Burnett: RIGHT. I KNOW WE'VE HEARD THAT THE STATISTICS AND THIS WOULD ONLY BE THE FIFTH TIME IN 50 YEARS THAT NEW JERSEY SPENT LESS MONEY THAN IT DID THE YEAR BEFORE. NEW JERSEY WOULD BE A STATE WITH A VERY BLOATED BUDGET. IS THE GOVERNMENT IS DOING RIGHT NOW IN WASHINGTON, $170 BILLION STIMULUS PLAN. THOSE CHECKS THAT WILL BE MAILED TO NEW JERSEY RESIDENCES COMBINED WITH THE HOUSING EFFORTS THAT HAVE IN OUT OF WASHINGTON. IS IT ENOUGH OR DO YOU SIT THERE AS A GOVERNOR OF ONE OF THE RICHEST AND MOST POPULAR STATES SAYING THIS IS THE WRONG THING?

Gov. Corzine: FIRST OF ALL, I THINK THEY WOULD HAVE BEEN BETTER SERVED BY PUTTING MONEY INTEREST PLACES WHERE WE HAVE THE GREATEST PRESSURE, INTO HEALTH CARE. I THINK THEY COULD HAVE HELPED THE STATES AND THE PUBLIC A LOT MORE BY PUTTING INTO MEDICAID ORCHARITY CARE AND SOME OF THE SUPPORT PROGRAMS. THAT MONEY WOULD GET SPENT AND WOULD GET INTO THE SYSTEM. IT IS NOT CLEAR FROM PREVIOUS STUDIES WHETHER THESE ONE-TIME REBATES END UP BEING SOMETHING THAT PEOPLE WILL SPEND OR THEY SAVE TO PAY OFF THEIR DEBTS. IN FACT, I'VE SEEN NUMBERS WELL BELOW 50% OF THOSE DOLLARS GOING INTO SAVINGS DIRECTLY OR INTO PAYING DOWN DEBT. SO I'M NOT SURE THAT WE'RE GETTING THE BIGGEST BANG FOR OUR BUCK. IT IS SOMETHING YOU CAN DO QUICKLY AND I'M NOT OPPOSED TO WHAT THEY'RE DOING.I'M NOT SURE IT GETS THE SAME LEVEL OF SUPPORT IT MIGHT HAVE BEEN ABLE TO DO BY PUTTING MONEY IN THE LONG-TERM UNEMPLOYED FOLKS. AS I SAID, HEALTH CARE AND A NUMBER OF OTHER ISSUES OR SOME COMBINATION OF BOTH.

Burnett: IT'S INTERESTING. TWO OF THE PEOPLE YOU'RE SPEAKING TO TODAY, THE FORMER CO-CHIEF HANK PAULSON WAS SPEAKING THIS MORNING. HE WAS GOING INTO MORE DETAIL ABOUT THE GOVERNMENT POTENTIALLY CHANGING SOME OF THE REGULATORY ENVIRONMENT AROUND THE MORTGAGE SITUATION AND AROUND CREDIT RATINGS APPROXIMATE.DO YOU THINK WHAT YOU'RE HEARING RIGHT NOW, THE BALANCE BETWEEN REGULATION AND NON-REGULATION WHAT YOU'RE HEARING FROM BEN BERNANKE AND -- THERE HE IS FROM HANK PAULSON, IS IT THE RIGHT SOLUTION?

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