Posted on 11/22/2007 6:11:26 PM PST by Coleus
A new report shows New Jersey's record debt is now above the $38 billion mark, a figure Governor Corzine has vowed to slash in half with a yet-to-be disclosed "financial restructuring" plan that includes toll hikes. The new total debt number comes just as Corzine is ramping up his effort to convince residents that toll increases are the best way to fix the state's financial problems. He is expected to roll out details of the plan in early January.
The governor and others have warned that New Jersey's mountain of debt will hamper its ability to build roads and schools, or adapt to other public needs, like health care for low-income children. This year, the state paid $3.1 billion for its annual debt, or nearly 10 percent of the state's budget. In all, New Jersey residents face both the fourth-highest total debt and per-capita debt burdens in the nation, according to the report compiled by the New Jersey Commission on Capital Budgeting and Planning.
The debt translates into $3,700 for every man, woman and child living in New Jersey, the governor said. It also means the first $600 of every state tax bill goes to paying down the debt, he said.The commission's report puts debt issued directly by state government at about $30 billion. The figure rises to $38.1 billion when all debt issued by independent agencies such as the New Jersey Economic Development Authority and the Sports and Exposition Authority is included. Both the general and total debt amounts included in the report are in line with the debt figures listed in a comprehensive report on state debt published by The Record in August.
That report outlined how total state debt jumped from $13.3 billion in 1998 to more than $37 billion this year. It also showed how state officials have borrowed huge chunks of money to spend on roads and bridges, colleges, hospitals and school aid. It also detailed how the state borrowed billions to plug short-term holes in the state budget, a practice halted in a 2004 state Supreme Court decision. Lawmakers also borrowed against New Jersey's payout from its lawsuit against the nation's tobacco manufacturers. That $7.6 billion payment in the late 1990s was scheduled to be paid over 24 years, but lawmakers used the settlement to secure an immediate $3.5 billion payment from Wall Street to cover budget shortfalls in 2003 and 2004. And New Jersey residents continue to pay for $2.7 billion in "pension bonds" borrowed to plug a budget shortfall in 1996.
Voters in New Jersey may be tiring of the high debt. Earlier this month, voters turned down a ballot question on authorizing $450 million in bond funds for stem cell research. The governor said during a speech Thursday before municipal officials in Atlantic City that he may be able to cut the state's debt in half if he's allowed to change the way the toll roads are managed. "It is the ever-increasing debt burden that is sucking the life out of the state's finances and our ability to serve our citizens," Corzine said. "Make no mistake, I am willing to lose my job if that's necessary to set our fiscal house in order and get New Jersey out from the debt burden constraining our future."
Republicans have sued the Corzine administration to release a consultant's report that studied ways to leverage the New Jersey Turnpike, the Garden State Parkway and other state "assets" into a new stream of revenue for the state's needs. But a judge on Friday ruled that the report is not a finished product and thus not yet subject to the state's public records law. "The administration is using legal technicalities to avoid doing the right thing, which would be to level with the public," said Assembly Republican Leader Alex DeCroce of Morris County. "The taxpayers have a right to know what the governor is doing with their tax dollars, and no amount of legal maneuvering can justify the administration's stonewalling."
The debt? State employee pensions and benefits...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
What a mess. Corzine may become the next Jim Florio.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Don’t Democrats generally prefer higher taxes, because of the need to provide ever increasing government services???????
People are already leaving NJ because of the high taxes.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
And yet they keep raising taxes. Can’t theses idiots understand basic economics? Lowering taxes will increase investment and industry in NJ and thus the tax base. But I preach to the choir here, sorry.
The state is (or was) full of conservatives and most are leaving. When the constitution can be ignored on a whim their vote can be ignored, as it has been in recent history.
Just seems that everyone (politicians) wants to make their millions and retire … the welfare of the inhabitants of NJ (and its future) be damned.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Meanwhile, those idiots are doing business-friendly things like this:
N.J. may penalize utilities that pollute (greenhouse gas taxes)
http://www.freerepublic.com/focus/f-news/1929366/posts
Yes people are leaving, but the dems are more than happy to chase away republicans and replace them with yellow dog democrats. Down here in the trenches (local level) these guys care nothing about the public good. It’s all a game so they can retain power and give themselves and their friends public employment. In my town, the real dem power is the town attorney who runs the machine to keep himself, his family and his cronies on the public dole. When you talk about what is good for the community they sneer at you.
New Jersey is America’s future under corrupt Democrat power. America becomes a monster that feeds itself by consuming itself. The Democrat party was and is the party of slavery.
My wife is from NJ and we lived there for many years … had to leave, taxes got to be too much. I really believe that NJ is a great place to live, and is a beautiful state (called the Garden State after all), once you get south of NY, and hated to leave … but a dollar only goes so far.
Just wondering … at some point all the moneymakers (taxable people) will be out of NJ, than what will happen … national bailout of a state? Lord help us.
watch’em tax their way out of the problem!
/s
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