The governor said his critics should be saying: 'We were wrong' Watch video
Gov. Chris Christie speaks at a town hall meeting in Hamilton in this April file photo.MONROE (Middlesex County) — At a town hall meeting in Monroe, Gov. Chris Christie said new projections that show significantly more state revenue prove his policies are working.
Earlier this week, the Office of Legislative Services estimated an extra $900 million in revenue will come in, while the State Treasurer made a more conservative estimate Tuesday, putting added revenue closer to $500 million.
Christie said his critics should be saying, "We were wrong."
"New Jersey's revenues are growing without tax increases," Christie said, adding the extra revenue "shows that the economic policies we're following are working."
The increase in revenue had little to do with policies in New Jersey, according to Dave Rosen, budget officer with the non-partisan Office of Legislative Services. He told the Assembly and Senate budget committees that the increase was driven by the state's wealthy, who saw their incomes rise with the stock market.
In testimony before the same committees, state Treasurer Andrew Sidamon-Eristoff did not disagree with Rosen, though he added that the administration's pro-business, anti-tax policies have helped the state's budget outlook.
Cash-strapped states across the country are suddenly discovering loads of unexpected revenue, courtesy of their wealthiest residents whose incomes were slashed during the recession, but are now rebounding along with the stock market.
That resurgence is especially helpful to states like New Jersey and California, whose financial fortunes are closely tied to those of their wealthiest residents. The states depend on the top 1 percent of earners for more than 40 percent of their income tax revenue. California this week boosted its revenue estimates by $6.6 billion over the next two years.
Democrats quickly dismissed the idea that Christie's policies are responsible for the new funding.
"Before they break their arms patting themselves on the back trying to take credit for the increased revenue estimates, the governor and New Jersey Republicans should recognize that the rich got richer in New Jersey because of the success of the stock market, not their policies," said State Chairman John Wisniewski (D-Middlesex).
On Tuesday, Sidamon-Eristoff said the budget will be revised to include the added revenue, which will allow the administration to consider tripling the property tax rebates for those already receiving them. The governor will also increase the size of a pension payment and make it earlier than required, the treasurer said.
Those actions are dependent on the Legislature passing public employee pension and health benefit changes.
By Megan DeMarco and Jarret Renshaw/The Star-Ledger