Both the Christie administration and the non-partisan Office of Legislative Services are now projecting lower tax revenues for the fiscal year beginning July 1 – but they differ on how much.
The Office of Legislative Services is predicting that state tax revenues will fall $1.3 billion short of the Christie administration's latest projections. Approximately $635 million of the shortfall is for the fiscal year that begins on July 1 and $668 million is for the current budget that ends on June 30.
Meanwhile, Andrew Sidamon-Eristoff, New Jersey state treasurer, testified that the administration cut its previous revenue estimates for the same period by $676 million.
The figures were presented in testimony to the Assembly Budget Committee last week, and could make the budget process more difficult and contentious.
The Christie administration remains committed to its proposed state income tax cuts. Sidamon-Eristoff said in order to make up the revenue shortfall, the state would borrow for transportation projects rather than paying with current revenues; tap accounts such as the Tobacco Settlement Fund, the Clean Energy Fund, and the Workforce Development Fund; and cut salary increases for non-union employees.