NJ budget woes to be covered by a bond? Think again
The attorney who advises the Legislature has concluded that a proposal by Gov. James E. McGreevey to borrow $1.5 billion or more to help balance the 2005 budget is unconstitutional.
Attorney Michael Porroni believes, like I do, that deficit bonds are an even worse example of fiscal recklessness. As stated in an article in Sunday’s paper,if
lawmakers approve the budget by the end of the month, it will mark the third year in a row the McGreevey administration has borrowed money to pay current expenses.
Only California, with the nation’s largest deficit, has borrowed more to balance its budget.
As an editorial today points out,
All this borrowing comes in a year when the state is raking in about $700 million more from the income tax than originally expected. That’s nearly half the amount to be borrowed, but lawmakers and McGreevey would rather spend it.
While the governor’s looking at more debt, further tax increases, and shortchanging the pension system, the New Jersey taxpayer will have the highest combined tax rates in the country. Then our children will contnue to have sky-rocketing tax rates, and ever-increasing debt, too.