As reported by nj.com, tax collections during the first two months of the current budget year fell significantly short of Governor Chris Christie’s aggressive revenue projections, according to figures released by the Treasury Department. Monthly revenue reports this early in the year do not typically garner much public attention, but they have taken on added meaning this budget cycle because the results will help decide whether New Jerseyans get a tax cut and whether Christie’ so-called “Jersey Comeback” is more than a catchphrase.

The State collected $1.9 billion in revenue in July and August, 4.9 percent less than the $2.03 billion Christie projected and less than 1 percent lower than the State collected over the same two-month stretch last year. The lower-than-expected collections included the top two major revenue categories of income and sales taxes, which were off by 3.9 and 6.2 percent, respectively.

Christie is banking on robust growth of about 8.2 percent in revenues in the current $31.7 billion budget to cover increased pension costs, additional educational spending and what he hopes is the first phase of an across-the-board income tax cut. Democrats are delaying a decision on the tax cuts to see if Christie hits his targets.

The latest monthly revenue figures come a day after Standard & Poor’s lowered the State’s credit outlook citing the Governor’s optimistic revenue projections. The agency affirmed the State’s credit rating of AA-, among the worst in the nation, but warned that it could downgrade the rating if the projections fail to materialize. A downgrade could cost taxpayers significantly more money in borrowing costs.

State Treasurer Andrew Sidamon-Eristoff pointed out a few of the highlights in the otherwise lackluster report that he says shows the State is heading in the right direction. He noted that August income tax collections were an all-time high and business taxes beat projections. “Income tax and corporation business taxes are showing welcome strength,” Sidaamon-Eristoff said in a written statement. “Both July and August income tax were strong, and August even beat the pre-recession results of Fiscal 2008.”

Tags: Articles, budget, Christie, income taxes, NJ Public Safety Officers, revenue projections, shortfall, tax collection, Treasury Department
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Photo of Donald C. Barbati Donald C. Barbati

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues…

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues litigated before the courts and administrative tribunals throughout the State of New Jersey. In addition, Mr. Barbati also routinely represents individuals in various types of public pension appeals, real estate transactions, and general litigation matters. He is a frequent contributor to the New Jersey Public Safety Officers Law Blog, a free legal publication designed to keep New Jersey public safety officers up-to-date and informed about legal issues pertinent to their profession. During his years of practice, Mr. Barbati has established a reputation for achieving favorable results for his clients in a cost-efficient manner.

Mr. Barbati has also handled numerous novel legal issues while representing New Jersey Public Safety Officers. Most notably, he served as lead counsel for the Appellants in the published case In re Rodriguez, 423 N.J. Super. 440 (App. Div. 2011). In that case, Mr. Barbati successfully argued on behalf of the Appellants, thereby overturning the Attorney General’s denial of counsel to two prison guards in a civil rights suit arising from an inmate assault. In the process, the Court clarified the standard to be utilized by the Attorney General in assessing whether a public employee is entitled to legal representation and mandated that reliance must be placed on up-to-date information.

Prior to becoming a practicing attorney, Mr. Barbati served as a judicial law clerk to the Honorable Linda R. Feinberg, Assignment Judge of the Superior Court of New Jersey, Mercer Vicinage. During his clerkship Mr. Barbati handled numerous complex and novel substantive and procedural issues arising from complaints in lieu of prerogative writs, orders to show cause, and motion practice. These include appeals from decisions by planning and zoning boards and local government bodies, bidding challenges under the Local Public Contract Law, Open Public Records Act requests, the taking of private property under the eminent domain statute, and election law disputes. In addition, Mr. Barbati, as a certified mediator, mediated many small claims disputes in the Special Civil Part.

Mr. Barbati received a Bachelor of Arts degree in history, magna cum laude, from Rider University in Lawrenceville, New Jersey. Upon graduating, Mr. Barbati attended Widener University School of Law in Wilmington, Delaware. In 2007, he received his juris doctorate, magna cum laude, graduating in the top five percent of his class. During law school, Mr. Barbati interned for the Honorable Joseph E. Irenas, Senior United States District Court Judge for the District of New Jersey in Camden, New Jersey, assisting on various constitutional, employment, and Third Circuit Court of Appeals litigation, including numerous civil rights, social security, and immigration cases.

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