An Associated Press report in the New York Times says the New Jersey Nets are considering moving to Madison Square Gardens if state funding for an arena in Newark is not approved before the end of the year.

The Nets want the state to kick in $190M of the estimated total of $355M the arena would cost.

Senate Democratic Leader Richard J. Codey said an Easter timeframe for a decision was more reasonable.  But Gov.-elect Jim McGreevey warns that a looming budget shortfall should put all discretionary spending on hold.

The Nets' lease for the "outmoded" Continental Airlines Arena runs through the 2006-2007 season, but the team can relocate for next season if it gives notice by Jan. 1 and pays a $7.5 million escape fee.