Budgets, state and local

[novillero]

Two articles of interest today. First the state of NJ has seen sales tax revenues decrease:

State tax collections fell more than 9 percent short of projections in November for the second straight month, bringing the year-to-date shortfall to $459 million and raising fears the budget deficit may grow even larger than expected...
...Nearly every major revenue is down from the same point in 2007 — 3 percent for income taxes, 4 percent for the lottery, 5 percent for sales taxes, 7 percent for gas taxes, 9 percent for corporate taxes, 10 percent for casino taxes, 28 percent for real estate transfer taxes.

The only ones not down are taxes on inheritances, insurance premiums, alcohol and wholesale tobacco products.

Revenues are behind projections by 4.2 percent over the first five months of the fiscal year. Should they finish the year that far behind the budgeted $33 billion in tax collections, that would yield a nearly $1.4 billion revenue shortfall.

www.app.com/article/20081217/NEWS0301/812170324/-1/nletter05?source=nletter-news

SECOND Article,

Jackson Township is freezing non-union employee wages in anticipation of a $4 million shortfall in its 2009 budget.

Actually, the shortfall could be higher, depending on the amount of state aid that is provided to the municipality this year.

"Everything will be considered," said Reina, who was appointed interim mayor at the Township Council meeting Nov. 26. "Going into next year, cuts are going to have to be made in every department if we are going to minimize any possible tax increase," the mayor said.

Overtime has been eliminated in the short term, except in emergencies. Other money-saving measures could be implemented by the mayor after the holidays, including job cuts. In Brick, more than 50 municipal workers will be laid off this month.

www.app.com/article/20081219/NEWS/812190370/-1/nletter05?source=nletter-news