New Jersey’s budget crisis is among the very worst in the country. That’s the warning from a new study of fiscal problems facing state governments during these tough economic times.
In Newark on Thursday, the current and incoming governors will both likely face some tough questions.
New Jersey’s math doesn’t add up. That’s the Pew Center on the States’ take on the economic crisis. In fact, according to its new survey – “beyond California, states in fiscal peril” – the Garden State and 9 other states are on the brink of fiscal disaster.
How critical is the situation? Advisors say Governor-elect Chris Christie will not rule out declaring a state of emergency when he takes office in January. Such a declaration would give him broad powers, including the suspension of rules for laying off state workers.
The Pew Center survey finds that after years of fiscal mismanagement, the Garden State is having trouble playing catch-up during a crippling recession.
Complicating matters is the state’s $44 billion debt load and the collapse of earnings on Wall Street. The study also found that Governor Jon Corzine’s efforts to shrink state government and bring spending in line with revenues barely made a dent when it comes to improving the economy. His successor’s hands may be tied.
On the campaign trail, Christie pledged to not raise taxes or cut aid to local grade school education. But the new Republican governor, facing a Democratic controlled state legislature, says he is leaving his options open.
“I am trying to send a message to the Democratic legislature, this administration is going to be about what works,” the governor-elect said.
(Source: CBS2 HD)
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The article making the rounds is that about a dozen states are about to go under including all the states with significant frum populations (other than Maryland, probably due its dependence of federal-related employment in DC). New York didn’t make the list, which is surprising (though New York is politically bankrupt as well, and the list only dealt with fiscal issues).