Garden State legislators may need to plug a $133 million gap in the proposed $33 billion fiscal 2009 budget due to a new revenue projection for next year that indicates revenue will fall below current administration estimates.
David Rosen, legislative budget and finance director in the Office of Legislative Services, presented his calculations last week before the Assembly Senate budget committees. Rosen anticipates New Jersey will collect $32.17 billion of total revenue next year, $288 million less than the $32.46 billion listed in Gov. Jon Corzine’s proposed 2009 budget, which he presented to the Legislature on Feb. 26.
On the plus side, the state does have about $155 million more than expected for the current fiscal year that officials could apply to next year’s revenues, reducing the $288 million gap to $133 million. But the governor’s plan includes budgetary reforms that would require surplus revenue to be placed within a new long-term obligation and capital expenditure fund. That would mean the state would have to use the additional $155 million to help pay down pension and health care obligations and support capital projects, and not to plug the budget hole.
“We are faced this year not only with changing budget rules, but a national economy that is in turmoil,” Rosen said to the committee members.
Corzine’s budget is smaller than the current year’s fiscal plan by $500 million and includes approximately $2.7 billion of budgetary cuts to help bring next year’s expenditures in line with decreasing revenues. It’s those shrinking revenue figures that have officials scratching their heads.
“I do not recall a year in which I was less comfortable with the revenue forecast we are putting before the committee,” Rosen said last week.
