PRESIDENT ’ S VIEW
New Jersey , Flush With Money , Has an Opportunity for a Reset
Tax revenues are expected to yield a $ 6 billion surplus in FY21 .
By Anthony Russo President , CIANJ
June marks the month where the New Jersey State Legislature needs to present a state budget back to the governor for approval . New Jersey must have a balanced budget by July 1 each year , according to our state constitution . So , what is different about this year ’ s budget ? A few things .
For starters , New Jersey , along with the country and world , is coming out of a global pandemic . Now that the vaccines are being integrated and cases continue to drop , the world is opening up again . One can sense the jockeying for position and the anticipation of what the “ new ” normal will be once the pandemic is declared over .
During her testimony before the legislative budget committees , New Jersey ’ s State
Treasurer , Elizabeth Muoio , broke down the amount of money New Jersey received in 2020 from the CARES Act and other federal initiatives . New Jerseyans received $ 10 billion in direct stimulus checks , $ 23 billion in enhanced
“ CIANJ urges our leaders in Trenton to pay down our debt , reinvest in our businesses and infrastructure and save for the next downturn in our economy .”
unemployment benefits and $ 23 billion in paycheck protection program loans . Additionally , the State of New Jersey received approximately $ 5 billion in direct aide .
When you add this all up , it is safe to conclude that a lot of money was pumped into our economy , which has been on life support since the start of the pandemic with a one third of businesses shuttering permanently .
As a result of this infusion of cash , tax revenues have been coming in higher than expected to the tune of a $ 6 billion surplus in FY21 alone and a projected $ 3 billion surplus in FY22 . On top of these surpluses , New Jersey is slated to receive $ 10 billion more over the next two years from the American Rescue Plan . This presents a unique challenge to our governor and legislature because , more often than not , the discussions center around budget deficits and whether to raise taxes or cut spending . So what should New Jersey do with all this cash ?
Any good business owner would pay down debt , reinvest in business and save money to weather the next crisis . We urge our leaders in Trenton to do the same . Pay down our debt , reinvest in our businesses and infrastructure and save for the next downturn in our economy so taxes and fees do not need to be increased .
CIANJ President Anthony Russo encourages state legistators to use tax revenues to pay down debt and invest in businesses and infrastructure .
Photo : Getty Images / iStockphoto
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