The state apparently did better during the third quarter of the current fiscal year than it initially expected, giving it $533 million more in revenue than expected.
The money, however, won’t go very far — much of it is rightly targeted to debt reduction, though the governor wants to shift some to reverse aid cuts to small towns and restore the state Department of Agriculture, both of which are worthy recipients. But there is no mention of restoring aid to hospitals or higher education, both of which seem more important to me.
And, just as significantly, the extra revenue this year is expected to disappear again during the 2008-2009 budget year. As the Ledger writes, state Treasurer David Rousseau
emphasized the state continues to have serious budget problems despite the windfall, which was based on last year’s tax returns when the economy still was thriving. That isn’t the case now, and Rousseau said he expects revenues in the budget year that begins July 1 to be $159 million lower than anticipated.
So, while the windfall is nice, it means little in the long run.
South Brunswick Post, The Cranbury Press
The Blog of South Brunswick
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Hank Kalet 