Audit shows state missed 2012 revenue projections to sustain $2 Billion spending increase

State of NJ still spending like drunken sailors

Audit shows state missed 2012 revenue projections to sustain $2 Billion spending increase
Thursday, January 10, 2013
BY JOHN REITMEYER
STATE HO– USE BUREAU
The Record

Governor Christie’s $31.7 billion budget projects more than 7 percent revenue growth. But a new audit shows tax collections fell short of his more modest predictions for last year, coming in at less than half of what he expects for this year.

Christie, a Republican who is seeking reelection this year, based his call for the income tax cut he proposed in early 2012 on a blossoming state economy.

But information included in the Comprehensive Annual Financial Report released by the state Department of Treasury on Wednesday shows Christie missed his revenue projections for the fiscal year that ended on June 30, 2012, by roughly $288 million.

The shortfall was whittled down to just $123 million after a series of routine budget adjustments, and no bills were left unpaid or overdue. The gap was simply carried over into the current budget year because the state constitution prohibits deficit spending.

But Christie is projecting much bolder growth to support the $31.7 billion spending plan he signed in June, and the audit offers no evidence of such an expanding state economy.

The audit confirms the state saw growth during the last fiscal year, but not as much as Christie predicted and much less than he’s projected for the current budget year. Major revenue sources grew by a combined 2.8 percent during the last fiscal year.

The current budget, however, projects revenue growth of more than 7 percent to sustain a $2 billion spending increase.

But so far, tax collections have failed to live up to the governor’s budget targets. All 14 revenue sources tracked by the non-partisan Office of Legislative Services have lagged Christie’s projections.

https://www.northjersey.com/news/186266492_Audit_shows_state__missed_2012_revenue_projections_by__288M.html