TRENTON – The Office of Legislative Services said the state will need revenue increases of about 12.7 percent in order to achieve the year-end targets for fiscal year 2013.
The estimate was in light of the Treasurer reporting Tuesday that total major revenues are $425.9 million below their targets for the first six months of the fiscal year.
OLS pointed out that certified FY13 revenues assumed a growth of 8.4 percent above FY12 collections, but OLS stated that “every major revenue source is lagging its necessary year-end target growth rate.”
Regarding the corporation business tax, OLS reported that collections of $932.0 million through December are down 0.7 percent from the same period in FY12, “a sharp reversal from last month.”
“The important December quarterly payments were particularly disappointing, falling 10.9 percent below last December, indicating continuing underperformance. On the other hand, the much smaller CBT for Banks and Financial Institutions is meeting expectations with a growth rate of 56.5 percent so far this year,” OLS said.