Experts May Have Predicted New Jersey Revenue Shortfall
By David Madden
PHILADELPHIA (CBS) — With word this past week that New Jersey officials have fallen short, again, on projecting state revenues, there is a lot of scrambling to find ways out of the current $800 million hole by the end of June. And many experts are able to say, in effect, we told you so.
This is the third time a budget from the Christie Administration has come up short on the revenue side, prompting cuts in spending.
Economist Joel Naroff can’t blame Christie for trying to paint a rosy picture in a re-election year, all politicians do that. But New Jersey’s gotten into a bad habit that goes back almost a quarter century.
“We’ve had a budget deficit in this state, effectively, since the last year of the Kean Administration. They’ve just been papered over by one thing or another.”
Naroff isn’t surprised bond companies are lowering their ratings on financing New Jersey’s ongoing debt. He believes that will continue as long as the people in charge fail to demonstrate true fiscal responsibility, instead of just talking about it.