On May 19, the New Jersey State Treasurer reported revenues slightly above projections, revising budget forecasts for the upcoming fiscal year and increasing the state’s projected cash reserves. A structural deficit of more than $1 billion remains, signaling a continued gap between the investments the state has promised and the revenue available to fund them.
In response, New Jersey Policy Perspective (NJPP) releases the following statement.
Peter Chen, Senior Policy Analyst, NJPP:
“Even strong revenue collections can’t cover up the reality that the state doesn’t have enough revenue to cover the rising costs of basic services like schools and health care. The proposed revenue increases in Gov. Sherrill’s budget are a good start, but the legislature will need to find more revenue-raising options to keep the state’s finances on solid footing.
“Spending down the reserves without a plan to replace them would be the worst thing lawmakers could do right now. As today’s collections show, even above-average collections cannot make up for a tax structure that doesn’t keep pace with what the state has committed to provide. The state’s fiscal position reflects years of short-sighted decisions by past policymakers who failed to pay for the state’s obligations and raise the revenue needed to support them.
“The best time to raise revenue was yesterday. The next best time is right now.”
