TRENTON — State revenues are coming in at a better than expected pace, state Treasurer Andrew Sidamon-Eristoff announced today. In all, revenues between July 1 to December 31 were up 4.5 percent from what the state projected in this year’s budget. “It is a welcome relief to see revenues meet expectations in the first half of the fiscal year,...
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New Jersey state treasurer Andrew Sidamon-Eristoff speaks at a luncheon in this November 2010 photo.TRENTON — State revenues are coming in at a better than expected pace, state Treasurer Andrew Sidamon-Eristoff announced today.
In all, revenues between July 1 to December 31 were up 4.5 percent from what the state projected in this year’s budget.
“It is a welcome relief to see revenues meet expectations in the first half of the fiscal year, but we certainly aren’t out of the woods,” Sidamon-Eristoff said.
But the treasurer cautioned there were mixed signals in the report. The state’s income tax came in at 11.3 percent over projections, but the sales tax was 0.4 percent below projections. That could mean some high-income taxpayers, expecting the Bush-era tax cuts to expire in 2011, took their income in 2010 even though the cuts were later renewed.
“It’s reasonable to assume that the ongoing economic recovery should spark similar percentage gains in both sales and income taxes. Accordingly, caution is clearly appropriate in the face of contradictory revenue data,” said Sidamon-Eristoff. “The critical January-to-April collection period will determine whether FY 2011 will indeed meet or exceed our expectations or end in disappointment.”
Corporation business taxes came in 21.7 percent above projections, while collections from the state lottery were down 3.3 percent.
Overall, the state took in $12.61 billion – almost $600 million more than was projected.
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• N.J. public workers' pension fund gains 8.3 percent in first quarter
