State revenues beat revised projections by $93 million in May on the strength of record setting income tax collections.
The $805 million in income tax collected in May shattered the previous record for the month set in May of 2010.
In all the state collected $2,108,747 in the month. Major revenue sources of income tax, sales tax and corporation business tax all beat the revised projections for the month, while motor fuels, inheritance and realty transfer taxes all remained below expectations.
In a release the administration touted May as the sixth straight month that collections were ahead of projections. Early in the year, collections were off, pushing many to fear the state may come in well below expectations, but the latest surge in collections means the governor’s stellar revenue projections will come in closer than once expected.
Office of legislative Services Budget Officer David Rosen warned lawmakers in May that revenue through June of 2014 would come in $1 billion less than the administration’s projections.
“Compared to the revenue forecasts provided in the February Governor’s Budget Message, we anticipate $444 million less revenue in FY 2013 and $492 million less in FY 2014, for a two-year gap of $937 million. Six weeks ago that gap was $637 million,” Rosen told lawmakers in a May 19 email, according to the Star Ledger.
Further revisions made by the governor’s office that day dropped the gap to $700 million, $259 million for FY13 and $441 million for FY14.