State Budgets: New Jersey Governor Cuts Some Spending But Hints Tax Increases are Likely
December 28, 2008
In mid-2008, New Jersey approved a slightly increased $33.5 billion spending plan that included $2 billion in property tax rebates and increased spending in a number of areas but no tax increases (the first to make that claim in six years, but following massive tax increases in 2006). Since then, corporate income tax revenue is running 16% under projection, income tax revenue is under by 14%, the financial institutions tax is under by 55%, and the realty transfer tax is under by 38%, and Gov. Jon Corzine (D) estimates the total shortfall will be $1.2 billion. He is urging delays to capital expenses and cutting spending by $500 million. Corzine has said he will keep “all things on the table” (read: tax increases) to resolve an estimated $5 billion shortfall in the $35.1 billion 2009-10 spending plan. New Jersey also recently made some changes to its corporate income tax.
More on New Jersey here.