N.J. Budget Gap Now About $800 Million, Christie Administration Concedes
By David Madden
TRENTON, N.J. (CBS) — Members of the budget committee of the New Jersey Senate got an update today from the Christie administration on the state’s current $800-million revenue shortfall, how that gap might be filled, and what to expect in the next fiscal year.
State treasurer Andrew Sidamon-Eristoff concedes the number could get even larger.
“There is always the risk that it could increase. We are still tabulating April results and, of course, we have to make adjusted projections with respect to May and June, and frankly into July,” he said.
It appears the next budget, for fiscal year 2015, might have to be adjusted to the tune of about $1 billion.
As to how to address the short-term problem, state officials said they would offer some solutions in the next couple of weeks.
Payments to hospitals, schools, and even the state pension fund could be cut or delayed to make ends meet. That could make bond-rating agencies even more worried.
Still, all sides are determined to deal with the shortfall that no one saw coming.