New Jersey collected 10 percent more income tax than expected in December, making up for lagging sales and business taxes to leave the state’s monthly revenue 1.4 percent above expectations. The state made nearly $2.76 billion in December, up from the $2.72 billion budgeted, according to a revenue report released today by the Treasury Department. The boost gives the state government something of a reprieve after revenues were sharply off from expectations the first few months of the year, prompting several rounds of spending cuts, readjustments, and back and forth decisions from Gov. Jon Corzine, who has less than a week left in office.
Still, the state finished the first half of the year 2.9 percent – or nearly $373 million – below budget. The biggest revenue sources are income and sales taxes.
Gross income tax collections were 10 percent above budget, sales taxes were 6.4 percent below budget and corporation business taxes were 3.9 percent under budget.
The legislature in June passed a $29 billion state budget, which lasts from July 2009 to June 2010. That does not include authorities or other items such as unemployment taxes and benefits. The legislature and governor produce an annual spending plan, but the governor often has to revise that based on actual revenue or other events.
In November, the state quietly revealed in an investment filing it planned to cut funding for schools, hospitals and municipalities because tax collections were well below budget. Also, it had finished the previous fiscal year with less money than expected and had additional expenses. Star Ledger.