TRENTON – If there’s a hiccup in the state’s plan to privatize parts of the New Jersey Lottery, the budget revenue shortfall over the close of the next fiscal year could surpass $1 billion, according to the Office of Legislative Services.
David Rosen, OLS’ budget officer, told Senate lawmakers he’s uncertain whether the administration’s anticipation of receiving an upfront $120 million general fund infusion from the lottery privatization will come to fruition.
Earlier, Rosen told lawmakers OLS is projecting a $937 million shortfall over the Fiscal Year 2013 and FY 2014 budgets.
Currently, the governor’s administration is anticipating $120 million in the FY 2013 budget from the sale of parts of the lottery.
“On May 3, the Treasurer indicated that several unions ‘filed a protest of the intent to award the lottery marketing and sales operations to Northstar, which precluded any final contract award,’” Rosen said during a Senate budget hearing.
“We asked Treasury whether this matter has been resolved, but have not received a response as yet,” he said.