OLS says Murphy overestimating surplus

OLS says Murphy overestimating surplus

TRENTON, N.J. – New Jersey’s poor revenue projections suggest that Gov. Phil Murphy will have trouble keeping a $1.1 billion surplus next year to hedge against a potential national recession.

Frank Haines, the Office of Legislative Services budget and finance officer, told lawmakers on the Assembly Budget Committee Monday that he anticipates needing more state revenue for Murphy’s spending plans. OLS projects $182.8 million less revenue than the Murphy administration.

“I think the cumulative effect is that the surplus will be 25 percent lower,” said Haines. “So we would say that the surplus projection, adjusting only for our revenue forecast, is not a comfortable projection – it is an over projection.”

Haines was answering a question from Assemblyman John DiMaio who was dismayed.

“So we are not exactly sure that we are going to hit those numbers,” asked DiMaio. “We will have a lot more clarity in May when you come back so we will all pray for the best.”