May 17, 2011 3:46 PM GMT
While New Jersey is nowhere near off the path to default, it does appear that some of Chris Christie's reforms are beginning to work. Of course, unions and Democrats want the unexpected revenues to be spent on failing schools.
New Jersey is projected to take in $913 million more than expected in tax revenue through June 2012, according to new projections by the nonpartisan Office of Legislative Services.
The revised estimate will likely spark a partisan battle over how to spend the unexpected windfall as lawmakers consider Gov. Chris Christie’s proposed $29.4 billion budget.
OLS will be present the figures today to the Assembly Budget Committee, according to two sources familiar with the report who requested anonymity because they were not authorized to discuss it. State Treasurer Andrew P. Sidamon-Eristoff is also expected to give the committee the administration’s revenue estimates. A Treasury spokesman declined to comment today.
The surge will come from an unexpected increase in income tax revenue, according to a section of the OLS report obtained by The Star-Ledger. All other taxes were below administration estimates for the 14-month period, according to the report.