NJBIA Responds to OLS Revenue Projections Relating to FY 2021 Budget

NJBIA Vice President of Government Affairs Christopher Emigholz issued the following statement regarding the nonpartisan Office of Legislative Services’ (OLS) state revenue projections of $37.8 billion next year, $1.4 billion more than the approximately $36.4 billion in revenues estimated by the Murphy administration.

“The projections released by OLS on Tuesday further supports NJBIA’s position that the $5 billion in borrowing and new taxes proposed by Governor Murphy are not needed and can be greatly reduced in a balanced, final budget.

“The proposed budget does not nearly require $4 billion in borrowing, which will needlessly exacerbate our long-term debt service costs and further harm future budgets. The $1 billion in new taxes proposed, negatively impacting the very job creators who have seen untold losses due to the pandemic, also further jeopardizes New Jersey’s competitiveness.

“With these projections from OLS – made with more current sales tax figures than were available to the State Treasury – the irresponsible $5 billion revenue proposal can be greatly reduced. Budget solutions to do that can be found through the realization of:

• $1.4 billion in additional state revenue per OLS;
• $1.2 billion from keeping the pension payment flat to last year’s seven-tenths level; and
• $900 million after holding the budget surplus to a flat $1.3 billion.

“This $3.5 billion, plus money from holding the line on new spending and pursuing structural reforms, would help further avoid the need for ill-considered borrowing and added taxation.

“With the state’s Gross Domestic Product now 10% worse than the national average, New Jersey’s unemployment among the highest in the nation and businesses still at limited capacity, now is not the time to further tax, spend and borrow.

“We look forward to continuing to provide input to the Legislature and the Murphy administration to better inform a more fiscally responsible FY2021 budget.”