Governor Murphy, Economic Opportunity for All
Center Square NJ: New Jersey tax receipts numbers leads critics to question whether Gov. Murphy needs $10 billion borrowing authority
By Kim Jarrett
(The Center Square) – New Jersey’s tax revenues are down just 0.6 percent over the past 13 months when compared to the same 13-month period in the previous year, according to figures released by the state’s Treasury Department.
The state collected $34.9 billion, compared to $35.1 collected last year, according to the figures.
Sales tax collections are down 1.8 percent at $9.78 billion, but did show some improvements in July.
July tax revenues were $5.136 billion, a 120 percent increase over last year. The increase is attributed to the receipt of corporate and income tax payments that were delayed from April to July, according to the Treasury Department.
The numbers don’t support claims of a nearly $10 billion budget deficit touted by Gov. Phil Murphy, Republican state Sen. Steven Oroho said.
The Legislature agreed to let Murphy borrow $9.9 billion from the federal government to make up for shortfalls blamed on the novel coronavirus pandemic. Republicans challenged the law in New Jersey Superior Court, saying it was unconstitutional.
The court ruled the borrowing plan did not violate the state constitution but did restrict the governor from borrowing more than needed. Murphy will have to certify the need with revenue figures from the Treasury Department.
Read the full article here.