TRENTON, N.J. – Worries about a shortfall in New Jersey’s tax revenue continue after testimony by the state treasurer before an Assembly budget panel Monday.
Revenues are $310 million below current spending levels for the fiscal year that began in July, state Treasurer Liz Muoio confirmed to lawmakers. Adjusted appropriations for the fiscal year 2019 budget totals $38 billion while revised revenues presented today are expected to be only $37.7 billion.
“Democrats are senselessly praying that an April surge will redeem almost the entire shortfall,” said Assemblyman John DiMaio, the Republican budget officer. “That is a long shot.”
The slowdown is driven largely by underperforming income-tax collections, which are down 5.1 percent or $478 million. The income tax, which is constitutionally dedicated to property tax relief, is the state’s largest single source of revenue.
Murphy is banking on 6.9 percent income-tax revenue growth for the new fiscal year.
“The state’s economy is burned-out after a triple-whack last year of tax hikes, more spending and outmigration,” continued DiMaio. “Revenues never really catch up because people and jobs are leaving since taxes are simply too high.”
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