The top budget expert with the non-partisan Office of Legislative Services says there could be a two-year budget shortfall of almost $1 billion.

“Compared to the revenue forecasts provided in the February Governor’s Budget Message (GBM), we anticipate $442.2 million less revenue in Fiscal Year (FY) 2013 and $492.4 million less in FY 2014, for a two-year gap of $937 million,” said Dr. David Rosen, legislative budget and finance officer with OLS. “Six weeks ago that gap was $637 million.”

Last week, State Treasurer Andrew Sidamon-Eristoff reported a nearly 30 percent year-over-year gain in income tax collections combined with better-than expected collections of the sales and corporation business tax to generate monthly revenues of $3.91 billion.

According to the Treasurer, for the ten months ending April 30, revenues from collections of the state's 17 major taxes are 6.9 percent higher than in the previous year. April also marked the fourth month in a row that sales tax collections have exceeded budgeted levels.

"As expected, New Jersey has experienced a strong 2013 income tax filing season," said Sidamon-Eristoff. "Moreover, the fact that sales and business income taxes have tracked above budgeted levels in recent months indicates that New Jersey's diversified economy continues to grow stronger."