Rosen: $14M in income tax revenue shifts from FY13 to FY12; state needs 8.2% revenue growth to protect against shortfall

TRENTON – Office of Legislative Services budget officer David Rosen said today that the Treasury has moved $14 million in gross income tax revenue from fiscal year 2013 to fiscal year 2012. In addition, he said that the state revenue growth going forward would need to be 8.2 percent, 1 percent higher than the administration’s figure, in order to avoid any possible shortfall.

The shift of the $14 million was made, he said, based on an auditor’s recommendation.

The move, he said, will not change the fiscal picture all that much.

“It does not change the state’s net fiscal situation,” he told the Assembly Budget Committee.

He said the $542 million revenue shortfall projection he made in August, which Gov. Chris Christie slammed as an example of OLS’s way-off projections on revenues, was misunderstood.

Rosen said that amount was the difference between the expected and realized revenues. However, Rosen said he cautioned in a memo that that difference would be reduced in the coming weeks with adjustments.

Mainly, the gaps are closed by moving the new fiscal year’s revenue to the former fiscal year, like the $14 million the Treasury moved earlier this week.

“It’s entirely consistent with what we said then,” Rosen said.

He projected that revenue growth would need to be 8.2 percent, higher than Christie’s own 7.2 percent, which many analysts had already considered to be overly optimistic.

Earlier, Christie criticized OLS for issuing a revised projection for FY12 of approximately a $250 million shortfall.

The state Treasurer declined the committee’s invitation to appear before it today.

Earlier story:

Prieto: It’s ‘insulting’ Treasurer skipped hearing

Rosen: $14M in income tax revenue shifts from FY13 to FY12; state needs 8.2% revenue growth to protect against shortfall