N.J. May Face ‘Significant’ Surplus Drop, Bond Papers Say
New Jersey’s projected surplus may face a “significant” reduction in the fiscal year that began July 1, according to a preliminary offering statement for a $400 million bond issue.
An estimate Sept. 11 by David Rosen, the Legislature’s nonpartisan budget officer, put the surplus for the 12 months through June at $254 million less than Governor Chris Christie’s projection of $580 million. The bond statement, for an offering related to school construction and debt refunding, didn’t specify how much the surplus would shrink.
“It is anticipated that the ending undesignated fund balance for fiscal year 2012 will be reduced,” according to the statement. “Such reduction may be significant.”
The fiscal year also may fall short “as a result of additional spending and/or reduction in anticipated revenues,” according to the statement.
Such wording is typical of disclosure language, according to Bill Quinn, a spokesman for state Treasurer Andrew Sidamon- Eristoff, and Michael Drewniak, a spokesman for Christie.
The revenue figures won’t be considered official until an audit later this year, Kevin Roberts, a spokesman for Christie, said Sept. 11.
“This is nothing more than the standard disclosure that indicates the fund balance is only an estimate at fiscal year- end and always subject to adjustment in the audit, and that there are always uncertainties in the budget that have to be managed,” Drewniak said yesterday by e-mail.
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