New N.J. bond disclosure warns of revenue shortfall, impact of casino closures
SEPTEMBER 9, 2014, 7:21 PM
BY JOHN REITMEYER
STATE HO– USE BUREAU
THE RECORD
After scrambling earlier this year to close a $1 billion budget shortfall, New Jersey is now warning investors that the state could already be facing new revenue problems.
In a bond disclosure made public Tuesday afternoon, state officials said tax collections likely fell about $275 million short of the amount expected when the last fiscal year ended June 30.
The disclosure also warned the state may not meet casino revenue targets for the current fiscal year amid recent closings in Atlantic City. That could bring on spending cuts or other adjustments to keep the budget balanced as required by the state constitution.
Though final auditing of the last fiscal year is still underway, the disclosure from the state Department of Treasury warned the state may not have reached its goal of maintaining a $300 million surplus fund.
“The state, at this time, continues to work toward, but cannot give assurances of, realizing a final undesignated fund balance of $300 million,” the disclosure said.
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