JOHN REITMEYER | FEBRUARY 7, 2017
Inability to replenish ‘rainy day’ savings account is significant problem for Garden State
Missed revenue projections have sent Gov. Chris Christie scrambling to close sizable budget shortfalls in recent years, and a new report recommends several key policy changes that New Jersey could enact to help insulate itself against forecasting problems in the future.
Some of the suggestions follow basic rules of commonsense, like being more transparent and putting aside more money each year so that unexpected budget problems don’t have a major impact on important programs and services.
But other recommendations take on the budget-forecasting process itself, including suggesting the Christie administration should consider consensus forecasting, where input is taken from legislative staff and outside economic advisors, and also updating annual projections more regularly to keep tabs on any problems as they develop during the fiscal year.