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NEW YORK, NY May 13, 2008 —In New Jersey, tax revenues for 2007 came in higher than expected this spring, but State Treasurer David Rousseau is warning lawmakers not to get too optimistic as they negotiate a budget.

WNYC's Bob Hennelly has more.

Call it the echo effect from a healthier economy. A spokesman for the State's Treasury Department says a stronger economy last year produced $370 million more in revenue than Gov. Corzine projected in his budget proposal earlier this year.

But even with the windfall from 2007 State Treasurer Rousseau sees declining sales tax receipts as strong evidence tough budget choices remain. Yet in the Treasurers' testimony there was some good news for the state's farmers and park patron's with the Corzine Administration backing off plans to close the State's Department of Agriculture and to close some state parks.

Corzine and legislative leaders say they hope to wrap up this year's budget process long before the July 1st deadline.

For WNYC I am Bob Hennelly.