State Treasurer Says Previous Revenue Projections Were Overly Optimistic

By Managing Editor Mike Schneider
NJ Today

In Trenton, everybody is saying the state is going to bring in less tax revenue than expected, even the state treasurer. Andrew Sidamon-Eristoff lowered his estimates by $165 million and then he took some heat from the Senate Budget Committee.

“You would show a $165 million difference between GBM what was introduced in February and where you’re at today, correct?” asked Senate Budget Committee Chairman Paul Sarlo.

“Most of the reduction is due to the fact that we quite recently received confirmation that two energy-related revenue sources will fall significantly short of our expectations,” said the treasurer.

In Lavallette, Gov. Christie blamed the shortfall on natural gas prices being down.

“As a result, electric prices are down and heating prices are down,” he said. “So when the prices are low, you’re going to get less of sales tax on them. We have in big parts of the state people who went went from anywhere from 20 to 90 days without power. Well, when homeowners aren’t paying for electricity and aren’t paying for heat, then they don’t pay sales tax on that.”