Wednesday, April 7, 2010

FLOOD WATERS MUDDY THE BUDGET TIMEFRAME

Residents in 11 New Jersey counties impacted by the massive flooding recently have been given an extra month to file their income taxes. While this will clearly be helpful to those negatively effected by the storms, it kind of makes the job tougher for the Governor, his Treasurer and the State Legislature to get an accurate reading on revenues in time to pass a balanced budget by the midnight, June 30th constitutional deadline.

While testifying before the Assembly Budget Committee yesterday, Treasurer Andrew Eristoff pointed out that the later-than-usual revenue figures will have everybody watching the clock. Republicans and Democrats are already battling over Governor Chris Christie's budget proposal. Democrats say his planned $1.2 billion cut in aid to towns and schools and will lead to property tax hikes and Republicans claim Christie's plan is responsible and will put the state on the right track.

Nobody thinks the income tax filing extension was the wrong thing to do, but almost everyone agrees that it will be extra tough to hammer out a budget when you don't know, until the 11th hour exactly how much money the state has.

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