Chris Christie's chief economist resigns after years of inaccurate forecasts
New Jersey Governor Chris Christie's top economist Charles Steindel will step down at the end of August, reports Elise Young of Bloomberg News. The news comes as New Jersey is in a deepening fiscal hole, with tax revenues falling far short of expectations, and Christie cutting back on scheduled payments into the pension system.
Steindel was responsible for the administration's estimates of how much revenue would be collected each year. But in four of the five years he served in the administration, his forecasts were overoptimistic. Cumulatively, he overestimated how much revenue would come in by $3.5 billion.
A spokesman for New Jersey's Treasury Department told Bloomberg that Steindel decided to leave several months ago. State senator Paul Sarlo, Democratic chairman of the budget committee, told the Star-Ledger that Steindel "had a very rocky tenure." He added, "The big question always will be on these revenue projections: Were these his projections or was he browbeat a little bit?"
Economic forecasting is hard, and there isn't malfeasance behind every missed projection. But when the legislature's top budget wonk publicly criticized the estimates as overly optimistic, Christie responded by insulting him and suggesting that he be fired. Based on Steindel's revenue estimates, Christie then proposed an enormous tax cut in 2012 — one it's now obvious the state couldn't afford.
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http://www.vox.com/2014/7/21/5923335/christies-chief-economist-steps-down-after-years-of-inaccurate
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