Christie last year in Elmwood park
State revenues beat projections for December but still $426M short for the year
Tuesday January 15, 2013, 10:30 PM
BY JOHN REITMEYER
STATE HO– USE BUREAU
The Record
For the first time this fiscal year, tax collections have met Governor Christie’s revenue targets, helping to trim a shortfall that now stands at $426 million.
But with six months left in the fiscal year, and with continuing uncertainty about federal funding for the superstorm Sandy recovery, it’s unclear whether the modest tax-revenue gains mark a new, positive trend for New Jersey’s finances.
The state Department of Treasury released tax collection data Tuesday that indicated revenues came in about $25 million over Christie’s budget targets for the month of December, modest growth fueled largely by strong income-tax collections.
Many experts predicted an unusual income tax bump in December as a consequence of the fiscal cliff negotiations in Washington, D.C., and the expectation that federal tax rates would increase for the wealthy in 2013. New Jersey income tax collections ended up besting budget estimates by 14 percent in December, according to Treasury.
But it’s unclear whether state income tax collections will keep the same pace through April or drop off. Democratic lawmakers warned a “substantial” revenue shortfall remains in the Republican governor’s $31.7 billion budget.