New Jersey officials are working on a new state budget, However, the Christie Administration and the legislature’s budget officer are at odds over revenue projections.
David Rosen, with the Office of Legislative Services, said he expects revenues will not meet the administration’s estimates.
“OLS projected growth rate for next year is 5.5 percent compared to the 5.8 assumed by the executive.”
Rosen said he estimates revenues this fiscal year and next will be $526 million below the administration’s forecast.
State Treasurer Andrew Eristoff said energy taxes account for a significant portion of the shortfall, and he expects those revenues will improve.
“With the stabilization in prices, in fact in some spot markets we’re seeing increases, we feel that we’re no longer playing defense on the energy-related taxes.” Eristoff said he also believes sales tax revenue will pick up as retail sales improve now that wintry weather is ending.