TRENTON — Democrats and Republicans Thursday tangled over whether budget figures released by Gov. Chris Christie are too optimistic as a new report by a panel of experts sounded a dire warning about the state’s financial future. Christie last month issued a report that said income tax revenue grew 11 percent more than expected during the first six months...
Assembly Budget Chair Louis D. Greenwald speaks during an Assembly Budget Committee hearing in December.TRENTON — Democrats and Republicans Thursday tangled over whether budget figures released by Gov. Chris Christie are too optimistic as a new report by a panel of experts sounded a dire warning about the state’s financial future.
Christie last month issued a report that said income tax revenue grew 11 percent more than expected during the first six months of the fiscal year. The governor’s analysis compared results against what was budgeted, not what was collected during the same period last year.
On a year-to-year comparison, income tax revenue is coming in about the same as last year, Legislative Budget and Finance Officer David Rosen told the Assembly Budget Committee. He also said the governor’s figures did not take into account the full loss of revenue from the so-called millionaires’ tax, which will be felt in April or later.
"It seems to me in review with your office that those (higher) figures are possibly incorrect, if not misleading," said Assembly Budget Chairman Lou Greenwald (D-Camden).
Assembly Republican Budget Officer Declan O’Scanlon (R-Monmouth) jumped to the administration’s defense, saying it was a debate about a "method of accounting" and that it did not matter as long as the state met its revenue projections.
Rosen agreed, saying the revenue is coming in as projected.
The debate comes as a group of Rutgers administrators and former top level state officials painted a bleak long-term picture of New Jersey government finances.
The study, sponsored by the Council of New Jersey Grantmakers, takes stock of revenues and expenses at all levels of government and concludes drastic measures must be taken soon in order to ensure long-term financial stability.
"In no year of our research — from 2011 through 2016 — is New Jersey able to achieve a balanced state budget" without significant reductions to services and employee benefits, according to the bipartsian group. It urges the state to remap its spending priorities because it "can no longer fund government services at the level we’ve known." Municipal services, for example, would have to be slashed 20 percent by 2016, according to their estimates.
The largest threat is the $94 billion owed to public employee pensions and health benefits, a figure the report authors expect will grow. Another concern is what they call an antiquated system of collecting money and providing services.
"There are no easy solutions or silver bullets," said Sam Crane, one of the authors and a former state treasurer.
By Jarrett Renshaw and Salvador Rizzo/Statehouse Bureau staff
Matt Friedman contributed to this report.
Previous coverage:
• N.J. Democrats question validity of Christie administration's promising revenue reports
• Surplus of N.J. tax revenue may be byproduct of income shifting to avoid federal tax hike
• Gov. Chris Christie may propose business, income tax cuts by next month
• N.J. revenue is enough to meet budget projections, treasurer says
• N.J.'s $1.6B revenue last month meets budget projections
• N.J. Assembly committee to discuss $10.5B budget deficit
• N.J. Gov. Christie is not expected to raise taxes to close $10.5B budget shortfall