Another state is showing that the pain for state and local finances is not yet over.Earlier this week the hoopla was all about California, which needs a new round of austerity.
Now: New Jersey.
These datapoints have come across via Bloomberg:
- New Jersey April collections come in at $3.26 billion, down from $3.32 billion a year ago.
- April corporate taxes fall 22.1% in April.
- April income taxes fall 2.8% below budget projections.
- Total April revenue comes in 5.3% below budget goals.
Unlike California, New Jersey has been praised for being a bastion of fiscal stability. Guess not!
Add New Jersey to the ugly economic performance in Wisconsin, and suddenly a lot of the GOP’s favourite governors aren’t doing so hot.
Here’s the full press release.
New Jersey Fiscal Year Collections Up From Same Period Last Year,
April Numbers Below Expectations
Trenton, NJ – While tax collections for Fiscal Year 2012 are up from the same period last year, April results missed expectations, leaving New Jersey’s revenues $230.3 million behind February’s revised forecasts for the first 10 months of the fiscal year.
Collections for Fiscal Year 2012 now stand at $19.3 billion, up from $18.8 billion during the same period last year. April collections were $3.26 billion, down from $3.32 billion a year earlier.
“While April’s revenues were somewhat below expectations, reliable indicators show that New Jersey’s economy continues to grow,” said Dr. Charles Steindel, Treasury chief economist. “Economic growth has brought in more revenue for the state in Fiscal Year 2012 than in 2011, which is a good sign for the future.”
For the year-to-date, income tax collections are up 2 per cent from last year at $8.6 billion, and sales taxes have climbed 3.1 per cent to $5.9 billion. Corporate business taxes are up 0.7 per cent at nearly $1.8 billion. Motor vehicle fee collections have risen 16.3 per cent to $330.7 million.
April income tax collections were $1.73 billion compared to $1.75 billion in Fiscal Year 2011. Sales taxes were $732.8 million, up from $705.8 million. Corporation business taxes were $463 million, down from $547.1 million.
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