Drop in First Quarter State Revenue Collections
New Jersey’s total tax collections dropped below last year’s totals through the first quarter of the current fiscal year. A drop in revenues was not unexpected after the 2024 fiscal year began this summer amid a period of general economic uncertainty. Department of Treasury officials noted that they’ve forecast tax revenues will continue to decline through the midway point of the state’s July-to-June fiscal year before experiencing a second-half rally.
But it remains to be seen just how significant the decline could be and whether the predicted upswing can generate enough revenue to fund the $54.3 billion spending plan enacted by Governor Murphy and lawmakers in late June.
In all, the state’s tax collections through July, August and September dropped by $517 million, or about 6%, compared to the same three months last year, according to the state’s Treasury Department.
Returns from the income tax, the largest single source of revenue for the state budget, were off by about 7% year over year through the end of September. Returns from the corporation-business tax, another major revenue generator, were off by nearly 15% year over year.
Any revenue shortfalls that develop over the course of a fiscal year would have to be made up for by drawing down reserves or making other budget adjustments since New Jersey’s Constitution generally prohibits the state from operating with a deficit.
The final spending bill enacted by Murphy maintained more than $8 billion in reserves, providing a cushion for any unforeseen revenue losses or spending needs that may arise before the fiscal year closes on June 30, 2024.
NJ Democrats Outpacing GOP in Vote by Mail Returns
So far, approximately 200,000 New Jerseyans have already voted in this year’s off-year election, with almost 22% of all vote-by-mail ballots sent out by county clerks already returned.
Of the 918,435 ballots that were mailed, 918,435 have been recorded as received, according to an analysis by Ryan Dubicki, an Associated Press election researcher.
Republicans are just narrowly returning ballots at a higher percentage than Democrats, 26%-25%, but Democrats have a huge advantage: 57% of all ballots mailed were to Democrats and 18.5% to Republicans; nearly two-thirds of all ballots (66%) come from Democrats and 22% from Republicans.
Democrats have returned more ballots than Republicans in the most closely-watched legislative districts: 3,988 in District 3; 4,947 in District 4; 2,878 in District 11; 3,308 in District 16; and 2,178 in District 38. VBMs sent back by Democrats currently outnumber Republicans in all 40 legislative districts.
Murphy Delegation Returns from Successful East Asia Trip
Gov. Phil Murphy and dozens of representatives from New Jersey businesses, academic institutions, and economic development organizations returned from the 2023 New Jersey East Asia Economic Mission trip Sunday – and by all accounts, it was a successful endeavor.
The governor met with the heads of state and key government officials in Japan, South Korea, and Taiwan. Such high-level meetings in these nations are not exactly commonplace and can be credited to the governor’s high-level governmental relationships established back when he was the US Ambassador to Germany.
Murphy, along with Choose New Jersey CEO Wes Mathews, New Jersey Economic Development Authority CEO Tim Sullivan, and First Lady Tammy Murphy, all participated in dozens of meetings and panel discussions — pitching the state’s growing economic metrics and its values.
Choose New Jersey, the economic development arm of the state once again showed its ability to coordinate another successful economic trip, the fourth of this Administration, while opening its fifth overseas office (one that serves the Pacific Rim will open in Taiwan in 2024). Choose New Jersey was the sponsor of this trip and no taxpayer funds were used. These types of overseas educational and economic relationship-building efforts are expected to be one of the lasting legacies of the Murphy Administration.
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