Assemblyman Joseph Malone, Assemblyman Frank Blee, Assemblyman Kevin O'Toole, Assemblywoman Alison Littell McHose

OLS REVENUE PROJECTIONS PROMPT REPUBLICAN BUDGET MEMBERS TO CALL FOR MORE SPENDING CUTS
NEW REVENUE PROJECTION DATA INDICATES MORE FISCALLY RESPONSIBLE CUTTING MUST BE DONE
The four Republican members of the Assembly Budget Committee today called on Governor Corzine to submit more fiscally responsible spending cuts in response to a report from the Office of Legislative Service's (OLS) showing revenue projections for the next two years that are nearly $200 million below what is anticipated in the governor's budget proposal.

"The public outrage about this budget is growing and these new revenue numbers are very troubling news," said Assembly Republican Budget Officer Joe Malone, R-Burlington, Ocean, Monmouth and Mercer. "This revenue shortfall again emphasizes that we cannot rely on tax increases to straighten out this budget. We need to cut spending."

According to the OLS revenue report delivered today to members of the Assembly Budget Committee, state revenues will come in $27 million lower than projected by the administration in the FY2006 budget and $159 million below the estimates for FY2007.

With public opinion polls showing that taxpayers are already skeptical of the Governor's budget proposal, the Republican budget committee members said this latest news will only make the public more distrustful of what is being proposed.

"We all know that New Jersey's budget picture is bleak and these numbers demonstrate that it may be even worse than the Governor expected," said Assemblyman Frank Blee, R-Atlantic. "This is all the more reason why we need to start looking at this budget with an eye toward where we can find savings and efficiencies."

The OLS projections anticipate the state will lose $110 million in estimated income tax revenue this year, although some of that will be offset by higher-than-projected revenues from other major taxes and fees. In FY2007, OLS projects income tax revenues to be $245 million less than administration projections - again only partially offset by higher revenues from other taxes.

"The revenue projections indicate that a significant portion of the modest surplus projected by the Governor may not exist," said Assemblyman Kevin O'Toole, R-Essex, Passaic and Bergen. "This places our budget in a precarious position as we head into the next budget cycle. We need to be more responsive to the realities of our current fiscal condition."

The OLS revenue estimate was presented to the Budget Committee Thursday afternoon, after State Treasurer Bradley Abelow appeared before the committee in the morning to answer questions about the Governor's budget proposal.

"Regardless of the discrepancy in the revenue numbers, it is evident that we need to cut spending," said Assemblywoman Alison Littell McHose, R-Sussex, Morris and Hunterdon. "If we are going to be successful in rolling back the Governor's tax hike proposals we need to start cutting wasteful spending from this budget immediately. Government must live within its means just as every family must."

The Republican members noted that it is possible to reduce the size of the state budget, pointing out that three times during the 1990's, when Republicans controlled the Legislature, they actually reduced the size of the budget. The budget reductions took place in Fiscal Years 1993, 1995, and 1997.

#####

For more information, contact:
Assemblyman Joseph Malone/609-298-6250
Assemblyman Frank Blee/609-407-0407
Assemblyman Kevin O'Toole/973-696-2323
Assemblywoman Alison Littell McHose/973-726-0954