The Ridgewood Blog Brings a Free Market Laissez-faire Point of View to Local, New Jersey State and National Issues.
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Trenton NJ, in recognition of Unclaimed Property Day on February 1st, the Department of the Treasury is encouraging the public to find out if they are one of nearly 33 million people in the United States with unclaimed assets like forgotten bank accounts, unpaid life insurance benefits, utility deposits, and unused rebate cards.
State Senator Holly Schepisi, ” Hell Must Have Froze Over”
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Trenton NJ, After a thorough review of fuel consumption statistics and consultation with the Legislative Budget and Finance Officer, the Department of the Treasury announced on Tuesday that New Jersey’s gas tax rate will decrease by 8.3 cents per gallon beginning October 1 to comport with the 2016 law that requires a steady stream of revenue to support the State’s Transportation Trust Fund (TTF) program.
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Trenton NJ, State Treasurer Elizabeth Maher Muoio delivered a written revenue update to the Assembly Budget Committee today, announcing that revenue collections are expected to hit an all-time high, bolstered by economic activity which has recovered more than a year earlier than national forecasters predicted just six months ago.
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TRENTON NJ, State Treasurer Elizabeth Maher Muoio released the following statement on the decision by Moody’s Investor Services to upgrade New Jersey’s outlook from negative to stable due to the better than expected revenue performance in Fiscal Year 2021, and the expectation that large resulting fund balances will support budget flexibility through the coronavirus recovery.
Continue reading Moody’s Investor Services Credits New Jersey’s outlook from negative to stable
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Trenton NJ, The New Jersey Department of the Treasury today priced the General Obligation bonds authorized under the COVID-19 Emergency Borrowing Act one day earlier than anticipated due to the amount of interest the State had received.
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Trenton NJ,The Assembly Republican caucus sent a letter (click here for PDF) to state Treasurer Elizabeth Maher Muoio Wednesday requesting a detailed itemization of the new costs incurred fighting the coronavirus pandemic and how much is expected to be reimbursed by Federal Emergency Management Agency.The Murphy administration has not provided detailed information on contracts or expenses related to the pandemic, but senior budget officials estimated the state has spent close to $200 million on coronavirus expenses.
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TRENTON NJ, The Assembly Budget Committee passed a bill Monday that would allow at least $14 billion in borrowing to replace revenue lost during the economic shutdown in response to Covid-19.
Republicans on the committee asked that taxpayers get a chance to weigh in, if there was a back-up plan when borrowing for revenue is struck down as unconstitutional, and if the administration would consider an alternative plan that provides much needed revenue while cutting taxes for the middle class.
Continue reading Time for Fiscal Discipline Instead of Massive Borrowing Schemes to Fix Budget
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Trenton NJ, State Treasurer Elizabeth Maher Muoio issued a new voluntary disclosure statement to bond holders today, as required by law, providing the most detail, to date, on the potential impact COVID-19 may have on New Jersey’s finances, including revenue collections and pension fund contributions.
June 15,2018
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Trenton NJ, The Department of the Treasury today announced that dedicated revenues remain stable while General Fund revenues remain weak for FY 2018 with the Corporation Business Tax (CBT) seeing a substantial decline for the month of May.
As State Treasurer Elizabeth Maher Muoio has pointed out in recent months, despite the growth in dedicated revenue sources – the Gross Income Tax (GIT) and the Petroleum Products Receipt Tax (PPGRT) – a challenging structural imbalance remains due to the weakness in revenues supporting the General Fund. Excluding the GIT and the PPGRT, collectively all other major revenues are down $120.4 million so far in FY 2018.
The CBT declined 44.8 percent in May and is down 3.4 percent for the year. The CBT for banks and financial institutions is down 26.8 percent year-to-date. Additionally, the Motor Fuels Tax, Estate Tax, the Cigarette Tax, and Casino Revenues are also down through the end of May.
Overall, May revenue collections for major taxes were up 6.3 percent compared to last May, however this is due solely to the growth in two of the State’s dedicated revenue sources. Year-to-date, total revenues increased $1.478 billion, or 5.9 percent, tracking closely with the FY 2018 revised aggregate target.
The Sales and Use Tax, the largest General Fund revenue, was up 1.1 percent in May and is growing by only 1.5 percent year-to-date due to recent tax rate reductions.
May collections for the GIT rebounded from April’s weak performance. Net receipts of $990.3 million were up $116.2 million, or 13.3 percent above last May. Of that growth, $71.5 million was due primarily to the annual “tail” of final 1040 tax payments lagging into May. The GIT, which is dedicated to the Property Tax Relief Fund, is up 9.4 percent year-to-date in FY 2018, $1.125 billion above the same point last year.
The State’s other significant dedicated revenue, the PPGRT, is up 70.7 percent through the end of May, $474.0 million above the same point last year, due to a statutory tax rate increase. These funds, however, are dedicated to the Transportation Trust Fund.
June will be the 12th month of FY 2018, featuring important quarterly estimated payments for the GIT and the CBT. In particular, the CBT’s June quarterly estimated payments are highly uncertain following a 16.0 percent decline during April and a 19.5 percent decline in May. Treasury estimates some improvement in June, but if double-digit declines continue, the CBT would fall below the year-end target.
June 2,2018
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Trenton NJ, State Treasurer Elizabeth Maher Muoio on Friday directed all state cabinet and agency heads to immediately freeze all hiring, promotions and discretionary spending until further notice in order to ensure General Fund resources are adequate to support essential state operations.
“I have repeatedly made it clear that we face extraordinary fiscal challenges due primarily to the structural imbalance in our General Fund. Given the uncertainty about bringing Energy Tax Receipts on budget before the close of the fiscal year, we have to reserve all available resources in order to ensure we close out the General Fund in a positive position.
“Because the General Fund accounts for roughly 55 percent of state funding, it is essential that we freeze all discretionary spending to ensure we can support the crucial functions that keep the state operating – everything from caseworkers for children in foster care to the operation of our developmental centers to the safety and protection provided by State Police.
“To that end, I have sent a letter to all cabinet and agency heads today ordering them to freeze all hiring, promotions and non-salary operating and discretionary funding,” said Muoio.
