From the Daily Record:
State revenues continue to fall below projections, putting New Jersey in potentially tighter budget squeeze.
A new analysis by the nonpartisan Office of Legislative Services predicts that taxes and other revenue for the budget year that ends June 30 will be $402 million less than Gov. Chris Christie’s administration had expected.
The falling revenue won’t necessarily require immediate budget cuts, but it would largely eliminate the state’s current surplus of $500 million.
However, the OLS also estimates that revenue for the fiscal year that begins on July 1 will be $365 million less than the Christie administration projects.
Of the major state revenues, income taxes are experiencing the largest drop-offs, according to the OLS.
If those revenue projections prove true, then cuts beyond the already severe reductions proposed by Christie for the next fiscal year would be required to balance the state budget. The state Constitution requires the budget to be balanced every year.
From the Star Ledger:
New Jersey’s budget picture is getting even uglier, with a projected $765 million shortfall during the next 13 months, according to figures to be released today.
An internal memo obtained by The Star-Ledger shows the bulk of the problem — $402 million, driven by a steep drop-off in income tax collections — must be dealt with before the current fiscal year ends June 30.
The state is also projected to bring in $365 million less than Gov. Chris Christie forecast in his already austere $29.3 billion budget proposal for next year, according to the memo by the nonpartisan Office of Legislative Services.
Sen. Paul Sarlo, chairman of the Senate budget committee, said the new figures were a “major setback.”
“I don’t believe anybody was expecting this,” said Sarlo (D-Bergen). “This is a significant, significant setback to the budget process.”