The Budget Officer for the non-partisan Office of Legislative Services told members of the Senate Budget and Appropriations Committee that the state remains in the same fiscal hole it was when he spoke to their counterparts in the Assembly last week. The $1.3 billion deficit for the current fiscal year is constitutionally required to be filled by June 30. The current projected deficit already takes into account the $1 billion in savings identified by Governor Corzine.
The biggest deficit in terms of dollars remain in sales tax and income tax. The sliver of good news is that the sales tax figure may begin an upward trend once December figures are released. Budget Officer David Rosen also revealed that the deficit has been exacerbated by a $170-$180 increase in the demand for services through Medicaid.
This is further evidence that this year's budget requires the long-overdue conversation over the proper role and size of government in New Jersey.
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