TRENTON – Lagging revenue returns now mean state revenues need to grow by nearly 10 percent for the remainder of the fiscal year to compensate for the current shortfall, according to a memo from the Office of Legislative Services.
The nonpartisan office issued a revenue snapshot Friday just hours after the state Treasury released data that showed that revenue collections are off nearly $175 million in the first quarter of the fiscal year.
The report indicates that the state must record big gains in the coming months since Fiscal Year 2013 targets for major revenues assume 8.4 percent growth over the prior fiscal year collections.
“According to the Treasury’s September revenue report, total revenues are growing by only 1.9 percent above the same period last year,” reads OLS’ revenue snapshot. “Since first quarter growth has been well below 8.4 percent, the remaining three quarters of FY 2013 will now need to grow by about 9.6 percent to compensate.”
The total number of growth needed could rise to 9.9 percent since “significant amount of estimated payments were postponed (last September) due to delays permitted for those taxpayers impacted by Hurricane Irene,” according to the report.