So, being that New Jersey already had one of the highest tax rates in the country and had the largest debt and deficit in the country, where should they have gotten the money from to balance the budget?

Increasing taxes on the wealthy will only result in the wealthy increasing their gross income, avoiding taxes through loopholes, passing on the costs, or moving out of the region (capital flight); increasing taxes on businesses will only result in New Jersey being at a competitive disadvantage, and businesses (and jobs) leaving the region to more business friendly regions; increasing taxes on the middle class will only result in decreased economic activity as people can afford to buy less or leave the state.

This leaves cutting spending ... From my understanding of American State finances, the vast majority of spending is on education and social spending; and this means that education and social spending need to see significant cuts.

You might want to maintain your belief that this government spending translates to increased economic activity which justifies the spending, but the current position of states like California and New Jersey would indicate the opposite.

Don't forget that NJ has one of the worst business climates due to taxes already. Raising more taxes would see few returns due to flight, as you said.

Most of the jobs are outsourced overseas to cheap labour markets these days to  help these multinational business owners to make bigger profits. There are huge costs associated with international free market economics which has resulted in high rates of unemployment in developed nations and the rise of the developing nations. Weak or no unions in America and higher rates of unemployment and underemployment. High rates of unemployment due to companies outsourcing jobs overseas and flooding market with cheap labour. More tax payers are needed to contribute towards the New Jersey economy. 

For every 1 job that goes overseas, 5 will go to other states. That is the reality in states with anti-business tax laws send far more jobs to surrounding states than anywhere else.

Fox News and Republicans will tell you  that the Democrats are Socialists/Communists and the Republicans are the good white knight who will save the day. Chris Christie does not have a chance at becoming the next President of the US. Fox News and the American people are already sick of Obama. Obama came with lots of hype and hope in 2008 but his popularity has fallen dramatically over two years. I have a feeling that  Sarah Palin will be elected the Republican Party's candidate for the 2012 Presidential election. Sarah Palin as President of America is a very scary proposition.  

No way Sarah gets elected by the Republicans. Very few, and I mean VERY few straw polls have had her win anything.

he's a Republican, that makes him a Right Wing nutjob by default.

Nancy pelosi is a leftwing nutjob by default because she's a democrat. See what I did there?

he's a Republican, that makes him a Right Wing nutjob by default.

the Democratic Party is Centre Right, the Republican Party is Far Right

seriously, would it kill people on here to learn some basic politics?

That's not true at all. I've never heard of the democratic party being centre right. Democrats are on the left and republican's are on the right. Then you have people that are extreme on boths sides of the isle. You also have your moderates.