FY13 first half revenues lag projections $425M

TRENTON – Revenues for the first six months of fiscal year 2013 lag about $425 million, or about 4.1 percent off projections, the Treasury Department reported.

Actual revenues so far in FY13 were $10.028 billion compared to a budgeted expectation of $10.454 billion, the state reported.

Among the big three revenues, corporation business taxes were off 15.1 percent, $932 million in actual revenue compared to a budgeted figure of $1.09 billion.

Also for the first half of the fiscal year, sales taxes are down 5.5 percent, $3.25 billion actual vs. $3.446 billion budgeted; but gross income taxes were up, 2.3 percent, $4.357 billion actual vs. $4.257 billion budgeted.

For the month of December alone, Treasury reported that gross income taxes were up 14 percent, $1.066 billion actual compared to $934 million budgeted.

Corporation business taxes in December were down 20.2 percent, $337 million actual vs. $422 million budgeted.

Sales taxes for December were off 1.4 percent, $651 million actual vs. $661 million budgeted.

Treasury reported that overall in December revenues totaled $2.36 billion, 1.1 percent over projections of $2.34 billion.

Compared to actual December 2011 collections, gross income tax revenues were up nearly 20 percent, $1.06 billion compared to $890 million.

However, the other two major revenues were down when compared Decembers. 

Corporation business taxes for December 2012 were $337 million compared to $378 million, a nearly 11 percent difference.

And sales taxes were down 2.9 percent, $651 million in December 2012 vs. $671 million in December 2011.

Charles Steindel, the Chief Economist for the New Jersey Treasury Department. talked in a release about another area of revenue concern, casinos.

“The improvement in casino tax collections showed that Atlantic City is starting to get back on its feet after the revenue losses it suffered in October and November as a result of Sandy. The gains we have seen over the first half of the fiscal year in collections of the realty transfer tax are also a sign that the state’s real estate market continues to firm and more transactions are getting done as buyers take advantage of the historically low cost mortgages that are still available today.”

Casino revenue was up in December 2012 compared to December 2011 by 3.6 percent, but compared to budgeted expectations was down 20.7 percent. Casinos are working to get back on normal footing after Superstorm Sandy.

"It’s not a political environment that’s particularly warm for incumbents, but it looks like Booker has little to be worried about as the campaign season draws to a close."
—Krista Jenkins, poll director and professor of political science, FDU.