New York, NY —
New Jersey's budget picture continues to get bleaker. Actual tax collections are far short of the Corzine Administration's projections. WNYC's Bob Hennelly has more.
According to New Jersey's non-partisan Office of Legislative Services (OLS), the state's shortfall for the current year has now tripled to $1.2 billion. OLS reports the anticipated yield from the state's April 15th income tax collection was off by $800 million, or down by 40 percent.
Governor Corzine hoped to close this year out with a surplus, but now will have to make hundreds of millions of dollars in cuts in the current budget cycle that ends June 30th. OLS analysts expect next year's shortfall will be significantly larger than the Governor's $2 billion projection. Corzine has already implemented several cost cutting measures including mandatory furloughs for state employees. New Jersey's Treasurer will publicly release the latest revenue numbers later this month. The governor and legislature must reach a budget deal by July 1st.