Posted: Tuesday, 13 May 2008 2:12PM
New Jersey Official: We'll Collect More Than Expected from Lottery
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TRENTON, N.J. (AP) -- New Jersey will try to boost state lottery sales to help make up for declining tax revenues and balance next fiscal year's cash-strapped budget, the state treasurer told senators Tuesday.
But Treasurer David Rousseau cautioned senators against freely spending better-than-expected tax collections.
``We cannot and will not forecast that the good times will continue to roll in the midst of today's recessionary economy,'' Rousseau said.
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He said the state expects to collect $533 million more than initially estimated for the fiscal year ending June 30, and is expected to collect $159 million less than has been estimated for next fiscal year amid state and national economic woes.
Though the state will get more overall money than expected, Rousseau told legislators who have decried Gov. Jon S. Corzine's proposed spending cuts that the administration is committed to having ``every dollar of unexpected surplus built up this year be used to pay down the state's debt.''
The state has $32 billion in debt, making it the nation's fourth-most indebted state.
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In the past, lawmakers have used unforeseen surplus money to fund new programs, but Rousseau said, ``The practices of the past have led our great state to the brink of financial disaster.''
Legislators and Corzine have until July 1 to agree to a budget.
Corzine proposed $2.7 billion in budget cuts in the budget unveiled in February. Rousseau proposed $70 million more cuts in various state programs in what is now a $32.8 billion budget proposal.
Corzine's plans for less state funding for property tax rebates, municipalities, hospitals, state colleges and universities and nursing homes still stand.
But Rousseau said Corzine would rework proposed municipal aid cuts to ensure no community faces an average property tax increase of more than $100 from the reduction.
Legislators still weren't pleased, including Corzine's fellow Democrats who control the Legislature.
``There's really no rational way in how we're restoring this,'' said Sen. Paul Sarlo, D-Bergen.
Also still proposed are increased fees for a senior citizen drug program, new Medicaid co-payments and no cost-of-living increase for nonprofits.
The budget proposal also still calls for eliminating the state commerce and personnel departments and cutting 3,000 jobs from state government though layoffs and early retirements.
Legislators continued questioning early retirements, worrying they would increase taxpayer-funded retirement benefits.
``I don't see the benefit,'' said Senate Budget Chairwoman Barbara Buono, D-Middlesex.
But Rousseau said he's ordered lottery officials to increase sales by $25 million. The lottery has $2.4 billion in annual sales. According to The Tax Foundation, that equates to about $769 per household, the nation's ninth highest rate.
Rousseau didn't detail the plan, but Senate President Richard J. Codey has proposed negotiating deals with department stores and other popular retailers to sell lottery tickets and making lottery sales available via the Internet and cell phones. |
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