As he seeks concessions from state workers to balance his first budget, Gov.-elect Chris Christie is examining the possibility of declaring a financial emergency in the state, according to an official familiar with his plans. Such a declaration — invoking the same law as if New Jersey were hit by a natural disaster — could give Christie broad powers, such as suspending rules governing state worker layoffs. With many state workers due to receive two raises in the next fiscal year and a no-layoff pledge in place through December 2010, Christie’s transition team expects to tackle the issue before he takes office Jan. 19, two of his advisers said.

The advisers, who requested anonymity because the discussions are preliminary, said it is too early to determine whether a state of emergency would be an attractive proposition or a last resort in the face of a continuing recession.

Christie, a Republican who defeated Democratic Gov. Jon Corzine last week, will face an estimated $8 billion shortfall for the budget he must present by March.

His budget balancing options are limited because he has ruled out raising taxes or cutting state aid to K-12 education.

Corzine invoked the state of emergency provisions of New Jersey law in July 2006 in ordering the shutdown of state government after the unprecedented breakdown of budget talks between himself and the Legislature. New Jersey’s Constitution mandates a balanced state budget, so if a budget is not in place or if the spending plan is out of balance, government lawyers believe that is a legal “emergency.”

Corzine’s aides considered employing the same provisions earlier this year as state revenue plummeted in the face of a crashing national economy. But Corzine and the largest state workers union, the Communications Workers of America, ultimately reached an agreement calling for 10 unpaid furlough days while deferring a wage increase in exchange for a no-layoff pledge through December 2010.

Christie was critical of that deal throughout the campaign and reiterated today that he is not “bound by” the no-layoff agreement. He said working out a solution with unions is a priority to deal with “right away.”

“I want to leave my options open to reach a fair and appropriate resolution in light of the economic circumstances that confront the state today,” Christie said at a press conference in Hamilton. “It may turn out that there are no layoffs. If we can reach a fair agreement with all the parties that recognizes the pressures that the taxpayers are under and the state government is under, I would hope to have no layoffs. But that’s going to be a product of the negotiations that we’re going to have to have. So that’s not something that can wait.”

Christie was reluctant to be more specific. But he described his general attitude toward dealing with unions as “I vowed to be fair. I’m not going to be a pushover, and that’s going to be a change … We will have a tough but fair negotiation that will result in a fair contract to both parties.”

Bob Master, a spokesman for the CWA who earlier this year called the emergency option “dictatorial,” said Christie should respect the negotiations over the summer with Corzine.

“Emergency or no emergency, we believe that we have a binding collective bargaining agreement,” he said. “We think it would be a big mistake to start by voiding an agreement that was negotiated in good faith and that we believe is binding on both the administration and the union regardless of who is actually governor.”

Master declined to say whether the CWA would consider another wage deferral or other concessions to prevent layoffs.

In July 2006, Corzine invoked the Disaster Control Act when he issued Executive Order 17. It authorized him to exercise “emergency powers” and said “the statutory and regulatory provisions governing layoffs in state government … are hereby suspended.”

Corzine then furloughed 45,000 “nonessential” state workers for the weeklong shutdown. They were later paid for the time off.

A spokesman for Corzine declined to comment.

Like Corzine before him, Christie could invoke the emergency powers conferred upon him by the state Disaster Control Act, which gives the governor vast decision-making authority over resources and finances. But Christie’s interpretation and use of those powers could vary from his predecessor’s to accommodate the new governor’s circumstances.

Senate Majority Leader Steve Sweeney, an ironworker leader who has sparred with state worker unions, said it would be “natural” for Christie to consider the emergency option.

“It wouldn’t be a stretch to say there’s a financial emergency,” said Sweeney (D-Gloucester). “That’s obviously a very powerful tool that he has at his disposal.”

Sweeney previously advised Corzine to invoke provisions of state-worker contracts that would allow the governor to forgo wage increases if the Legislature did not fund them due to an emergency.

“If we don’t give him the money, then he can’t spend it,” Sweeney said today. “That’s in the contract and it’s recognized, so you’re not breaking their contract.”

Sweeney said he has not discussed the emergency issue with Christie.

Under the current agreement, CWA workers expect to receive two raises in the next budget year: one on July 1, 2010, and one in January 2011. Each wage increase would be 3.5 percent. If the state initiates layoffs before 2011, the January 2011 raises would kick in immediately, according to the deal. Star Ledger.