Massachusetts, New Hampshire and Texas are holding elections next week. Find out what's on your ballot in our latest report.

New Jersey state budget and finances

From Ballotpedia
(Redirected from New Jersey state budget)
Jump to: navigation, search

New Jersey budget and finances
Policypedia Budget Policy-logo-no background.png
General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
A+ (as of 2014)
Current governor:
Chris Christie
Financial figures
Total spending (state and federal funds):
$53.1 billion (estimated for 2014)
Per capita spending:
$5,945.29 (estimated for 2014)
Total state tax collections:
$29.1 billion (2013)
Per capita tax collections:
$3,262.85 (2013)
State debt:
$213.9 billion (as of 2014)
Per capita state debt:
$24,134 (as of 2014)
State budgets and finances
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Horizontal-Policypedia logo-color.png
Total state expendituresState debtTax policy in New Jersey
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in New Jersey increased by approximately $3.7 billion, from $49.4 billion in fiscal year 2013 to an estimated $53.1 billion in 2014. This represents a 7.5 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned New Jersey a A+ credit rating.[1][2][3]
As of 2014, New Jersey's state debt per capita was $24,134, the sixth highest in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

New Jersey had the lowest per capita spending when compared to neighboring states in fiscal year 2014, at $5,945.29.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
New Jersey $39,574 $13,566 $53,140 8,938,175 $5,945.29
Delaware $7,253 $1,903 $9,156 935,614 $9,786.09
Maryland $27,479 $9,859 $37,338 5,976,407 $6,247.57
New York $92,915 $41,171 $134,086 19,746,227 $6,790.46
Pennsylvania $62,391 $23,810 $86,201 12,787,209 $6,741.19
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in New Jersey can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.[3]

In New Jersey in fiscal year 2013, K-12 education accounted for 25 percent of total government spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
New Jersey 24.9% 7.9% 0.9% 20.4% 3.1% 10% 32.8%
Delaware 24.3% 4.6% 0.3% 17.2% 3% 8.7% 42%
Maryland 19.2% 14.5% 3.8% 21% 4% 10% 27.5%
New York 19.3% 7.6% 3% 29.1% 2.5% 6.4% 32.1%
Pennsylvania 14.9% 2.1% 1.5% 26.9% 2.6% 7.5% 44.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the New Jersey state budget spent on transportation decreased from 11.6 percent to 10 percent. See the table below for further details (figures are rendered as percents, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percents)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 24.9% 7.9% 0.9% 20.4% 3.1% 10% 32.8%
2012 24.7% 7.8% 0.9% 21.6% 3.2% 9.3% 32.4%
2011 24.4% 8.1% 1.1% 23.3% 3.4% 9.2% 30.6%
2010 24.6% 7.9% 0.9% 21.3% 3.5% 9.9% 32.0%
2009 24.1% 8.4% 0.9% 20.7% 3.4% 11.6% 30.8%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "population" and "per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "population" and "per capita revenue" have not been abbreviated).[9]

New Jersey collected about $29.1 billion in state taxes in fiscal year 2013.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
New Jersey $4,620 $12,198,133 $1,516,432 $12,108,615 $2,282,055 $967,026 $29,076,881 8,911,502 $3,262.85
Delaware N/A $487,202 $1,259,277 $1,130,501 $309,644 $159,692 $3,346,316 925,240 $3,616.70
Maryland $750,927 $7,347,048 $805,292 $7,693,324 $952,092 $569,508 $18,118,191 5,938,737 $3,050.85
New York N/A $23,217,491 $1,952,367 $40,230,379 $4,920,605 $3,346,329 $73,667,171 19,695,680 $3,740.27
Pennsylvania $55,537 $17,106,300 $2,585,202 $10,777,334 $2,208,163 $1,233,090 $33,965,626 12,781,296 $2,657.45
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
New Jersey tax collections by source in 2013
Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In New Jersey, individual income taxes and sales taxes and gross receipts accounted for roughly equivalent shares of total state tax collections at 41.6 percent and 41.9 percent, respectively.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
New Jersey 0.02% 41.95% 5.22% 41.64% 7.85% 3.33%
Delaware N/A 14.56% 37.63% 33.78% 9.25% 4.77%
Maryland 4.14% 40.55% 4.44% 42.46% 5.25% 3.14%
New York N/A 31.52% 2.65% 54.61% 6.68% 4.54%
Pennsylvania 0.16% 50.36% 7.61% 31.73% 6.50% 3.63%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic New Jersey budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: S 2015

Governor Chris Christie announced his fiscal year 2015 budget proposal on February 25, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $54.8 billion, including $34.4 billion in general fund spending.[10]

On June 30, 2014, Christie signed into law the fiscal year 2015 general fund budget. The enacted budget totaled $32.5 billion. Christie vetoed a tax increase on individuals earning over $1 million, as well as a corporation business tax.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, New Jersey had a state debt of approximately $213.9 billion. Its state debt per capita was $24,134. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
New Jersey $213,933,875,000 $24,134 6
Delaware $15,991,093,000 $17,437 17
Maryland $94,211,004,000 $16,010 20
New York $387,465,667,000 $19,799 10
Pennsylvania $184,903,767,000 $14,487 24
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: New Jersey public pensions and New Jersey public employee salaries

A 2012 report from the Pew Center on the States noted that New Jersey's pension system was funded at 71 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

The funding ratio for the state's pension system decreased from 75.96 percent in fiscal year 2007 to 64.54 percent in fiscal year 2012, a drop of 11.42 percentage points, or 15 percent. Likewise, unfunded liabilities increased from over $28.3 billion in fiscal year 2007 to more than $47.2 billion in fiscal year 2012.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for New Jersey and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
New Jersey A+ AA- AA- AA- AA AA AA AA AA AA AA-
Delaware AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Maryland AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
New York AA AA AA AA AA AA AA AA AA AA AA
Pennsylvania AA AA AA AA AA AA AA AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of New Jersey’s general revenues came from the federal government in 2012. That year, New Jersey received approximately $13.4 billion in federal aid, 26.3 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
New Jersey $13,412,759 26.25% 42
Delaware $1,814,112 24.68% 46
Maryland $10,030,264 30.16% 33
New York $48,698,785 32.78% 27
Pennsylvania $20,440,103 30.60% 32
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, New Jersey received $4.9 billion in federal stimulus funding between February 2009 and June 2013.[17]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[18][19]

  1. Budget instruction guidelines are sent to state agencies in August.
  2. State agency requests are submitted in October.
  3. Agency hearings are held in November and December.
  4. Public hearings are held in March and June.
  5. The governor submits his or her proposed budget to the New Jersey State Legislature on or before the fourth Tuesday in February.
  6. The legislature adopts a budget in June. A simple majority is required to pass a budget.
  7. The fiscal year begins July 1.

New Jersey is one of 44 states in which the governor has line item veto authority.[19]

The governor is constitutionally required to submit a balanced budget. In turn, the legislature is also constitutionally required to pass a balanced budget.[19]

Agencies, offices and committees

The following standing committees in the New Jersey State Legislature deal with budget and finance matters:

  1. Appropriations Committee, New Jersey General Assembly
  2. Budget and Appropriations Committee, New Jersey State Senate

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[20] According to the report, New Jersey received a grade of C+ and a numerical score of 79, indicating that New Jersey was "middling" in terms of transparency regarding state spending.[20]

Budget and finance ballot measures

See also: State and local government budgets, spending and finance on the ballot and List of New Jersey ballot measures

Ballotpedia has tracked 24 ballot measures relating to state and local budget and financial matters in New Jersey.

  1. New Jersey Appropriations Cap Amendment (2014)
  2. New Jersey Balanced Budget Amendment (2014)
  3. New Jersey Dredging Project Funding Amendment, ACR 79 (2014)
  4. New Jersey Fiscal Impacts and Revenues Amendment, ACR 70 (2014)
  5. New Jersey Free Public Schools Amendment (2015)
  6. New Jersey Fuel Tax Revenue to Transportation Trust Fund Amendment (2014)
  7. New Jersey Initiative and Referendum on Fiscal Policy Amendment (2014)
  8. New Jersey Limited Constitutional Convention on Property Taxes and Government Spending Amendment (2014)
  9. New Jersey Open Space, Farmland and Historic Preservation Funds, Question 1 (1998)
  10. New Jersey Payments to Municipalities for Open Space Amendment (2014)
  11. New Jersey Prohibition of Revenue Diversion Amendment (2014)
  12. New Jersey Public Education Funding Per Pupil Amendment, ACR 42 (2014)
  13. New Jersey Public Question 3, State Government Mandates on School Districts and Municipalities (1995)
  14. New Jersey Question 1, Increase in Garden State Preservation Trust Bond Limits (2003)
  15. New Jersey Question 2, Allowable Uses of the Corporation Business Tax (2003)
  16. New Jersey Question 2, Tax Revenue Dedicated to Air Pollution Control (2005)
  17. New Jersey Question 3, No Lottery Funds to go to Prisons (1999)
  18. New Jersey Sales and Use Tax for Open Space Preservation Funding Amendment (2014)
  19. New Jersey Sports Betting Funds for Developmental Disabilities Residence Amendment, ACR 61 (2014)
  20. New Jersey Surplus Revenue Funds and Estimating Process Amendment (2014)
  21. New Jersey Vehicle Fee for Transportation System Amendment, ACR 37 (2014)
  22. New Jersey Voter Approval of Indebtedness Amendment (2015)
  23. New Jersey Voter Approval of Indebtedness for Transportation Amendment, ACR 90 (2014)
  24. New Jersey Water Consumption Tax for Open Space Preservation Funding Amendment, ACR 116 (2014)

Recent news

This section displays the most recent stories in a Google news search for the term "New + Jersey + budget"

All stories may not be relevant to this page due to the nature of the search engine.

New Jersey state budget news feed

  • Loading...

Contact information

Office of Management and Budget
P. O. Box 221
Trenton, NJ 08625-0221
Email submission form

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: New Jersey," June 18, 2012
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  18. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  19. 19.0 19.1 19.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  20. 20.0 20.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014