But experts caution that no taxpayers should plan their budgets around such estimates.

Many institutions say they have already planned their budgets in the expectation of state funding, and the spending freeze is forcing some to cut programs and consider job reductions.

Managing agents say that particularly hard hit are the many foreigners who do not speak English and who plan their budgets by the sponsor's monthly cost projections.

During that time, school and local officials could not plan their budgets because they did not know how much state aid to expect.

As they plan their budgets for the next fiscal year, New Jersey's municipalities will be getting a discount on health benefits for their public employees.

"When we get ready to plan our budgets next year, a lot will depend on this case."

Most states are emerging from the recession and planning their first budgets in years without big tax increases or deep cuts in programs.

The goal is to provide districts with a greater degree of predictability in planning their budgets.

States were in generally good fiscal positions, Mr. Gold said, because many planned their budgets on pessimistic projections after the October 1987 stock market collapse.

Schools struggle to plan their budgets because they receive funds at unpredictable times.