NEW JERSEY – Revenue forecasts crucial to establishing State budgets would be more reliable under legislation sponsored by Senator Steven Oroho and approved Monday by the Senate Budget and Appropriations Committee.
Oroho’s bill, S-1530, would establish a joint legislative and executive branch New Jersey Revenue Advisory Board to provide consensus revenue forecasting advice for budget purposes.
“Accurate revenue forecasts are vital to the budget process,” said Oroho, the Senate Republican Budget Officer. “Policymakers depend on the forecasts, and more dependable projections will help minimize unanticipated budgetary problems. With the creation of the Revenue Advisory Board, New Jersey’s finances will be more predictable and manageable.”
Currently, revenue forecasts are offered by the Division of Revenue and Economic Analysis and the Office of Legislative Services. The often-inconsistent numbers are used to assist with budget preparation and adoption. Ultimately, the Governor has the responsibility of certifying the official revenue forecast used for the budget.
The five-members of the Revenue Advisory Board – including the state treasurer, the legislative budget and finance officer and an independent third member with budgeting experience – would produce a more reliable consensus for official tax-collection forecasts.
“Collaboration will ensure that neither the executive or legislative branch has too much influence over the numbers, and prevent overly optimistic projections from impacting budget integrity,” Oroho said. “This is a significant step to more responsible stewardship of New Jersey taxpayers’ money.”