Mr. McGreevey is spending so much so fast that he also plans to borrow at least $1.5 billion in addition to the tax increases. It will be the third consecutive year that New Jersey has resorted to debt bonds to cover ongoing operations, and Moody’s is now threatening to downgrade the state’s credit rating.
None of this will help New Jersey’s economy, which has been leading the Northeast’s slow recovery. The state’s jobless rate is 5.3%, compared with 5.6% nationally and 7.5% in nearby New York. The Bureau of Labor Statistics says New Jersey was responsible for two-thirds of the New York metropolitan area job creation in the 12 months that ended in March.
So I’m not alone in saying “When the state’s next budget crisis comes, we predict it won’t be only “the rich” who pay.”