STATE – Gov. Jon Corzine’s $29.8 billion budget proposal relies on revenue projections that are too optimistic, according to a consensus of economic reports used by the non-partisan Office of Legislative Services to analyze it.
David Rosen, the office’s budget and finance officer, told the Senate Budget and Appropriations Committee Monday that Corzine’s budget will leave New Jersey with a $100 million deficit instead of the $500 million surplus projected by the governor.
The state constitution does not allow deficit spending, so a revenue shortfall would require additional cuts to a budget that is already $3 billion less than the one approved last year.
Rosen also criticized the governor for not including a larger surplus margin in a year where revenue is extremely difficult to predict due to the bad economy. “You would want even bigger surplus than normal as a hedge,” Rosen said.