MONROE (Middlesex County) — Gov. Chris Christie took credit Wednesday for an unexpected surge in state revenue, although an independent expert and the state treasurer attributed the windfall to rising incomes among the state’s wealthier taxpayers. The governor also told a town hall meeting in Monroe Township, Middlesex County, that he planned to alter how state aid to public...
Gov. Chris Christie speaks a town hall meeting in Chesilhurst in this January file photo.MONROE (Middlesex County) — Gov. Chris Christie took credit Wednesday for an unexpected surge in state revenue, although an independent expert and the state treasurer attributed the windfall to rising incomes among the state’s wealthier taxpayers.
The governor also told a town hall meeting in Monroe Township, Middlesex County, that he planned to alter how state aid to public schools is distributed next year because the current formula "is, in my mind, ridiculous."
On Tuesday, the nonpartisan Office of Legislative Services predicted the state would see an additional $913 million in revenue through June 2012. State Treasurer Andrew Sidamon-Eristoff made a more conservative estimate, projecting revenue growth of $511 million more than expected when Christie unveiled his $29.4 billion budget in February.
At Wednesday’s town hall meeting, 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." He asserted that wealthy New Jerseyans are choosing to stay, and businesses are relocating in the state, because of his refusal to raise taxes.
But Dave Rosen, a budget officer with the Office of Legislative Services, told the Assembly and Senate budget committees this week that the increase was driven by the state’s wealthy, who saw their incomes rise with the stock market, and that the increase in revenue had little to do with policies in New Jersey.
Testifying before the same committees, Sidamon-Eristoff did not disagree with Rosen, saying he suspected that "much of the gain was in bonus-type income."
However, he added that the administration’s pro-business, anti-tax policies helped the state’s budget outlook.
Sidamon-Eristoff said the administration was considering using the additional revenue to triple the property tax rebates for those already receiving them. He said the governor would also make an earlier-than-anticipated payment to the state’s pension system and increase the size of the payment.
The windfall in tax revenue is not unique to New Jersey. Cash-strapped states across the country are discovering unexpected increases because their wealthiest residents, whose incomes plummeted during the recession, rebounded with the rising stock market.
The resurgence has been especially helpful to New Jersey and California, which depend on the top 1 percent of earners for more than 40 percent of their income tax revenue. This week, California alone increased its revenue estimates by $6.6 billion over the next two years.
In New Jersey, Democrats quickly dismissed Christie’s assertion that his fiscal policies were responsible for the newfound millions.
"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 Assemblyman John Wisniewski (D-Middlesex), the state Democratic chairman.
The town hall meeting came hours after a Monmouth University poll put Christie’s approval rating at 47 percent, dipping below his disapproval rating — which reached 49 percent — for the first time in more than a year. His approval rating was the same as it was in February, the poll found, though his disapproval rating rose by 9 points.
By Megan DeMarco and Jarret Renshaw/The Star-Ledger