Significant acceleration of revenue needed to hit targets , no the problem is state spending
James Foytlin aka PJ Blogger
Ridgewood NJ , The Office of Legislative Services released its May Revenue Snapshot on Friday, which reiterates that revenues for the current fiscal year are likely to come in well below even revised administration projections.
Lingering economic uncertainty, has led tax collections in the state to falll short of the Christie administration’s estimates for the third straight month, according to figures released Friday by the Treasury Department.The state taxx collections brought in a whopping $2.02 billion in May yet it was still short $36.4 million from Treasury Department estimates that had recently been revised downward only three weeks ago.
According to the Office of Legislative Services “Through the end of May, most major tax revenues have grown at rates below those necessary to achieve the Executive’s revised year end targets,” the report said. “To meet those targets, a significant acceleration of growth rates for a number of taxes will be required in the remaining weeks of the fiscal year.”
The report said Gross Income Tax receipts must grow at lest 4.3 percent in the remaining two weeks of the fiscal year in order to hit revised projections. While sales tax receipts are up 2.6 percent over the same period last year, May receipts are off 2.7 percent. To reach the projected 3.6 percent growth, collections must grow 8.3 percent in the remaining weeks of the fiscal year, or more than three times the current year to date growth rate.
Corporate Business Tax collections are up 1.8% so far this fiscal year. The administration did not revise its 2012 estimate, which represents 3.9% growth for the entire fiscal year. The CBT will have to grow by about 15% in June to reach the year end target.
While tax revenues remain significant they are not enough to cover current budget expenses and Christie like his big spending predators has resorted to the strategy of robbing Paul to pay Peter pulling moneys earmarked for certain government liabilities to cover current operating expenses.
New Jersey tax payers are still one of the most overtaxed residents in the USA ,while New Jersey still boasts one of the most over manned ,expensive and inefficient government bureaucracy’s in the US.
Rated near the bottom in business climate for years perhaps it is time to seriously look at streamlining regulations and eliminating governmental overlap.
The National Association of State Budget Officers report released last Wednesday showed Christie has proposed the largest increase in spending among the 50 states in 2013. Christie has called for a 7.2 percent spending increase for the 2013 fiscal year, while the average spending increase recommendation is 2.2 percent.
There are huge redundancy’s at the state ,county and local level and simply to many layers of bureaucracy and taxes a far to high for the state to be competitive . perhaps its time to cut spending and look to shrink the scope of government intervention in the economy .