New Jersey indicated it will fall short in its planned $3.75 billion contribution to the state pension system for the current fiscal year, according to a state Treasury Department report issued Friday.
The source of the expected shortfall is the state lottery for which New Jersey had counted on for about $1 billion of the total contribution.
However, data from the report for the 11 months ended May 31 showed lottery proceeds were $851.75 million, or 12.6% behind the $974.58 million for the period ended May 31, 2019.
Due to the state budget crisis caused by the economic impact of the coronavirus pandemic, a state Treasury Department report issued last month said the state won't use general revenues to cover any shortfall.
However, Treasurer Elizabeth Maher Muoio said in May that the state will make its next scheduled payment of $684 million on time and in full by June 30.
The New Jersey Pension Fund, Trenton, had assets of $75.1 billion as of April 30, according to the latest available data.
In the Friday revenue report, the Treasury Department said total major tax collections for May dropped 13.5% to $2.12 billion from May 2019 "as the economic impact of the global pandemic continues to take its toll on the State's finances."
For the 11 months ended May 31, total collections of $26.86 billion are down 8.5% from the year-ago period.
The report also "expects a portion" of the shortfall in gross income tax revenues "to be made up during July, when deferred April tax payments are due."
