The Senate Budget Committee is currently working on the state spending plan in light of new state figures showing a $351 million shortfall for the fiscal year. Sen. Paul Sarlo (D), chairman of the budget committee, says the shortfall could be higher than that and tax cut plans are being put on hold as the numbers are being worked out. He spoke with NJ Today Managing Editor Mike Schneider about the progress of the budget.
“The treasury has acknowledged a $351 million shortfall. In my conversations with the non-partisan Office of Legislative Services, we think it’s even much higher than that,” Sarlo said. “We could be at the end of the day — for the combined current fiscal year, 2012, and the proposed 2013 fiscal year budget — we could be close to a billion dollars worth of shortfalls.”
Sarlo said the budget committee is putting the Senate tax cuts and a proposal to give energy tax revenues to local governments on hold. “We really need to be responsible here. We need to get a handle on the revenues, where they are today for the current fiscal year and what we’re going to project going forward,” he said. “Ultimately though the governor has to certify the revenues.”
The governor, treasurer and the Office of Legislative Services will be before the Senate Budget Committee next week. “We need to hear from them to get a better handle on the revenue projections before you can consider any type of tax cut plans,” Sarlo said. “At this point in time, I believe we’re going to need to do some serious cutting both to get the current budget level and balanced and to go forward.”
Once officials are comfortable with the revenue numbers, Sarlo said Gov. Chris Christie will certify them and then officials will discuss tax cuts. “It was too premature for everyone to be out there talking about a tax cut plan,” he said.
Christie recently called Sarlo out during the budget process, but Sarlo said he doesn’t concern himself with name-calling. “I don’t know what he called me. I’m honored that I’ve gotten his attention,” Sarlo said. “It’s my job to be responsible and to make sure we have a responsible, balanced budget.”
Sarlo said Christie’s actions and pushing for an income tax cut could be because of higher political aspirations. “I’m not running for vice president. I’m not running to go to Tampa in August to tell everyone I gave them a 10 percent tax cut. That’s what he needs to do to keep his credentials high on the national level. All I care about is putting together a responsible budget and I think we’ve all learned from mistakes from the past.” Citing mistakes made in the Whitman, DiFrancesco, McGreevey and Corzine administrations, he said “Let’s get responsible.”
WATCH VIDEO: