NJ income taxes aren’t easing budget shortfall

    New Jersey faces another budget shortfall because income tax collections are not as high as projected.

    New Jersey faces another budget shortfall because income tax collections are not as high as projected.

    The Office of Legislative Services estimates state revenue over the next 13 months will be off by $767-million. The state Treasurer says it will be far less than that.

    To reduce the shortfall for the fiscal year that ends next month, the Christie administration is making more than $300-million in cuts, including less money for business development, the state’s disability benefit fund, and higher education debt service.

    That’s not sitting well with Senate Budget Committee Chairman Paul Sarlo.

    Sarlo:
    The Governor has been very critical of us, the legislature, in the past for various raids and diversions and today you see another $100-million or so of diversions and raids. If you’re saying we’re doing anything different it’s not. It’s more of the same.

    But State Treasurer Andrew Eristoff says the reductions are appropriate and should not have any immediate impact on services to the public.

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