Treasury blames bad weather as revenue collections drop

TRENTON – The state’s revenue collections are down in October, 3.1 percent under the budgeted projections. Over the first third of the fiscal year, the state’s revenues are down 3.4 percent against projections, according to a release from the Department of Treasury.

“We know the severe weather led to relaxation of deadlines for tax payments, hindered travel that generates economic activity, and caused power outages that forced some taxpayers to curtail their business operations,” state Treasurer Andrew Sidamon-Eristoff said. “Still, we can’t be 100 percent certain of the real impact on revenue unitl we have figures on collections from a month when weather was not a factor. The last two months of revenue collections have both been impacted significantly by multiple disruptions resulting from uncommonly severe weather.”

In October, income tax collections were 2.1 percent below budget forecasts; sales taxes were collected 3 percent below projections; but corporation business taxes were 10.4 percent above expectations. That said, each of those metrics is below projected levels for the fiscal year-to-date.

State chief economist Charles Steindel said the brushes with bad weather will likely tank November collections as well.

Office of Legislative Services budget office David Rosen had no comment on the state figures, but said the office will release its own budget snapshot on Thursday.

The release from the Treasury department, including statistical charts, is attached below.

Treasury blames bad weather as revenue collections drop