NJ Facing “Frightening” Revenue Shortfall
As if the news for New Jerseyans couldn’t get worse, it does. The latest tax revenue projections indicate that the state’s take will be even lower than expected. Here’s the scoop from NJBiz:
MONROE — Gov. Jon S. Corzine will soon drop another budget bombshell as a “frightening” revenue shortfall imperils the state’s spending plans, New Jersey Chief Counsel William J. Castner Jr. said this morning.
Reduced sales tax collections and other revenue retreats driven by the weak economy already spurred Corzine to propose spending cuts and tax hikes, but the latest projections indicate the state’s revenue flow will shrivel even more.
“The governor will likely make a formal announcement [about further budget revisions] soon,” said Castner, who addressed about 50 business owners today at a New Jersey Chamber of Commerce breakfast held at Forsgate Country Club. “The revenue numbers that are coming down the pike are frightening, and all options will be on the table.”
He declined to detail the latest revenue shortfall, but Castner did say the state is “committed” to spending cuts and to taking other steps to rein in the budget, which currently stands at $29.8 billion.
The plan for the year beginning July 1 already shaves about $3 billion from the current budget — but increases employer payroll taxes, suspends property tax rebates for households making more than $75,000 and institutes a one-year income tax increase on individuals making more than $500,000.
“We’re aware of the financial challenges facing the state, but we don’t want to see the administration raise taxes and plug the budget gap on the backs of business owners,” said Jim Leonard, legislative lobbyist for the New Jersey Chamber of Commerce.
“Businesses are already facing tax hikes in the form of increased state unemployment insurance and the loss of the personal property tax deduction,” which may be used by sole proprietors, limited-liability partnerships and other business structures, he said. “We would like to see a re-evaluation of all budget programs. Nothing should be exempt” from possible spending cuts.
So, here’s the bottom line. New Jersey taxpayers are tapped out. The well has run dry and we can’t afford what Corzine wants. And it’s time for him to face reality and cut the size and scope of our state government.
Of course, I will not be holding my breath. Castner’s statement that ”all options will be on the table” tells us all we need to know – Corzine will continue to stick it to the New Jersey taxpayer while protecting his precious government workers. Unfortunately, this is about the only thing NJ taxpayers will be able to take the bank.
{UPDATE} Budget is another $1.5B-$2B short
TRENTON, N.J. – Gov. Jon S. Corzine says New Jersey’s projected revenues between now and June 2010 will be $1.5 billion to $2 billion lower than previously expected.
He says the latest projection makes a difficult budget situation even more precarious.
Corzine told The Associated Press that he’s considering all options for cutting costs.
Corzine has already cut the current budget, which runs through June 30. He has also proposed a leaner one still for the new fiscal year that begins in July.
The spending plan for next year is just under $30 billion and calls for unpaid furloughs for state workers, reductions to property tax rebates, increased taxes for high-income people and spending cuts in most departments.
Cross-posted at Conservatives with Attitude! and Red County.
