As tax revenues lag, spending cuts forecast in N.J.

One of the Democratic leaders in the New Jersey Legislature says lower than expected revenues will result in budget cuts.

Revenues for the first 10 months of the current fiscal year are $350 million below estimates. Senate Budget Committee Chairman Paul Sarlo says the shortfall over the next 14 months could reach a billion dollars.

“The governor ultimately needs to certify these revenues,” said Sarlo, D-Bergen. “Once the governor certifies these revenues, we then will be able to determine how much we can spend. We’re going to have spending cuts here. There’s no doubt about it.”

Sarlo says lawmakers need to get a better handle on the revenue situation before restoring more of the money from energy taxes to local governments or acting on a tax cut plan.

But he would not declare that a tax cut is dead.