State Treasurer Andrew Sidamon-Eristoff outlined changes to the fiscal year 2012 and 2013 budgets to account for a projected $676 million shortfall in revenue.
The treasurer told members of the Assembly Budget Committee the state can expect to be short $514 million revenue for the current fiscal year and an additional $162 million through 2013.
To offset the missed revenue, Sidamon-Eristoff said he will shift $200 million in clean energy receipts from 2013 to 2012, to even out the shortfall.
The remaining $314 million will be offset using a combination of additional lapses and reduced supplementals as well as additional revenues of $27 million from the tobacco settlement fund, and a combined $24 million in available fund balances from the motor vehicle commission and the workforce development fund.
In addition, the state will reduce contributions to the health benefits fund and the school employee health benefits fund by $98 million. According to the treasurer, the changes will allow the state to end the year with a surplus of $524 million.
In 2013, the state will transfer $260 million from the PAYGO portion of the Transportation Trust Fund, instead borrowing the money to make up the difference, The state will also drop funding for pay increases by $20 million. Sidamon-Eristoff told the committee the administration also expects $150 million in so-called trend savings, which include debt service payments and employee benefits costs.
Another $79 million will come from additional clean energy revenues.
All in all, the treasurer said that with the changes, he expects the state to end Fiscal Year 2013 with a $300 million surplus.