Christie's New Jersey is Least-Solvent State: Study

Friday, 17 Jan 2014 01:13 PM

By Lisa Barron

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
New Jersey ranks last among all states in long-term solvency, a new study shows.

It's more bad news for the Garden State, where Gov. Chris Christie is occupied with the ramifications of the bridge-gate scandal.

The study,  released this week by the Mercatus Center at George Mason University, reviewed the comprehensive annual financial reports (CAFRs) for fiscal year 2012 for all 50 states.

It found that New Jersey's per-capita budget deficit was $727 in 2012, the worst in the country, with states on average showing a per-capita surplus of $364.

The Garden State also has per-capita long-term liabilities of $7,935, nearly three times the national average. Its "net asset ratio" is -1.33, also the worst in the country.

The study's author, Sarah Arnett, writes that New Jersey 's problems result from "tax revenues [that] have not kept up with expenditures, use of budget practices that only appeared to balance annual budget, and significant debt levels."

Not all of New Jersey's financial woes can be attributed to Christie, Arnett points out.

Its long-term solvency problems are "due in part to nearly 15 years of underfunding its state and local pensions," Arnett said.

As a result, the state has an estimated unfunded pension liability of around $25.6 billion as well as $59.3 billion in unfunded liabilities for the health benefits of retired teachers, police, firefighters, and other government workers.

But Arnett concluded that the states at the bottom of the rankings "have serious shortcomings in their management of at least one dimension of fiscal condition."

Meanwhile, the five states with the highest-ranked overall fiscal condition are Alaska, South Dakota, North Dakota, Nebraska, and Wyoming, Arnett found.

All five have Republican governors.

Related Stories:



© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Sony Hackers Taunt FBI, 'Congratulate' Its Success

Saturday, 20 Dec 2014 20:06 PM

A new message claiming to be from the group responsible for the Sony Pictures hack appears to mock the FBI, which named  . . .

US Turns to China to Help Stop NKorean Hackers

Saturday, 20 Dec 2014 19:42 PM

The Obama administration is seeking China's help in stopping North Korea from launching future cyber-attacks, the New Yo . . .

RNC to Theaters: 'We Cannot Be Bullied,' Show 'Interview'

Saturday, 20 Dec 2014 19:20 PM

The Republican National Committee is urging theater owners to play the The Interview following Sony's decision to pull . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved