Touting OLS revenue forecast, NJBIA wants state to nix planned tax hikes, borrowing

The New Jersey Business and Industry Association renewed its push against the state’s plan to borrow $4 billion to fill revenue shortfalls, claiming that a rosier revenue forecast from the Office of Legislative Services showed no such bonding was needed to balance the state’s budget.

“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,” NJBIA Vice President of Government Affairs Christopher Emigholz said.

The OLS revenue projections are roughly $1.4 billion higher than those released by the Treasury.

The business group wants the state to keep its pension payment flat at $3.8 billion instead of increasing the payment to $4.9 billion.

Though legislative and budget leaders from both chambers have declined to rule out a reduction to the pension payment, sources close to those leaders have told the New Jersey Globe they aren’t looking to reduce that amount.

The NJBIA also wants the state to cut $900 million out of the $2.2 billion it plans to add to its depleted surplus. Together, those Reductions would reduce spending by about $3.5 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,” Emigholz said. “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.”