Earlier today the Office of Legislative Services and State Treasurer Muoio testified at the Senate Budget Committee hearing and delivered updated revenue collection figures for FY 2019. In response to today’s testimony, NJPP releases the following statement.
NEW JERSEY POLICY PERSPECTIVE SENIOR POLICY ANALYST SHEILA REYNERTSON
“Today’s budget testimony delivered good news that revenue collections are above projections for the remainder of the fiscal year. But just as the non-partisan Office of Legislative Services warned, this is good news that should be taken with caution. This year’s budget relies on over $1 billion in one-shot revenue sources that are set to disappear. Lawmakers must pursue reliable and sustainable sources of revenue, like the proposed millionaires tax, to make up for these lost funds and continue investing in assets proven to grow the economy. A millionaires tax would also promote tax fairness, as the current tax code results in middle class families paying a higher share of their income in state and local taxes than the state’s top earners.
“The $317 million deposit into New Jersey’s rainy day fund — the first in eleven years — is a noteworthy accomplishment and a good budgeting practice that will reflect well in credit agency evaluations. However, more can and must be done to help prepare the state for the next recession or natural disaster. The state must build on last year’s successes and commit to new, renewable sources of revenue, robust surpluses, and continued deposits into the rainy day fund.”
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