TRENTON – State Treasurer Andrew Sidamon-Eristoff says the state’s revenue projections are “generally positive economic news.”
The treasurer made the statement during his opening remarks at today’s Assembly Budget hearing. But despite the gaining revenue numbers, the state is falling short of the administration’s overall budget projections.
“Although our revenue base is growing, the rate of growth for Fiscal 2012 so far has not met the expectations we set as of either the Fiscal 2012 Appropriations Act last June or the governor’s Fiscal 2013 budget message in February,” said Sidamon-Eristoff.
The treasurer said total FY 2012 revenue is expected to fall 1.7 percent below what was projected in February and .5 percent below FY 2013 projections.
The projection shortfall through FY 2013 amounts to more than a half a billion dollar deficit – about $676 million. The state will see a $314 million shortfall for fiscal year 2012 and a $362 million shortfall in Fiscal Year 2013, Sidamon-Eristoff said.
Earlier today, David Rosen, of the Office of Legislative Services, delivered the non-partisan office’s revenue report. OLS is predicting nearly double the shortfall through FY 2013.
Rosen told Assembly lawmakers that of the $668 million shortfall for the remainder of fiscal year 2012, OLS is projecting a $329 million shortfall in energy revenues, a $230 million shortfall in income tax revenue, $44 million below the governor’s sales tax revenue and $64 million below projection for the corporation business tax, and a $38 million revenue shortfall for the corporation business tax on banks and financial revenues.
For FY2013, OLS is projecting a $635 million shortfall. Of that, OLS forecasts a $388 million shortfall in income tax revenue, $49 million below projections in sales tax revenue, a $126 million shortfall in corporation business taxes, $55 million below Christie’s projections, and a $40 million energy tax revenue shortfall.