NJ Faces Big Budget Trouble

Friday, 14 Dec 2012 10:39 AM

By Sandy Fitzgerald

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Skipped pension payments, reliance on quick revenue fixes, and a great deal of borrowing have left New Jersey’s state budget in serious trouble, a new report on state finances claims.
 
The report, released by the New York-based State Budget Task Force, outlines the many budget issues that will likely come into play next year when Republican Gov. Chris Christie seeks re-election, the Bergen County Record reported Friday.
 
The report noted that New Jersey pension fund contributions will increase by an estimated $5.5 billion in five years, or about five times as much as Christie and state lawmakers approved in the last budget. In addition, costs for other budget items, such as Medicaid, school, and health benefits will go up by $3.7 billion in five years, and infrastructure improvements will cost $133 billion more over the next 10 years, the report said.
 
The ongoing fiscal cliff issue in Washington could also play havoc with New Jersey revenues, because the state relies a great deal on federal funds. The state receives about $12 billion a year from the federal government, and even a 10 percent cut could result in a loss of more than $1 billion to help fund state programs.
 
"Balancing budgets, to say the least, is going to be a challenge," Richard Keevey, a New Jersey budget expert who helped compile the report, told the Record.

© 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

Muhammad Ali Hospitalized With Pneumonia

Saturday, 20 Dec 2014 23:27 PM

Boxing great Muhammad Ali was hospitalized with a mild case of pneumonia that was caught early and should result in a sh . . .

Chicago Mayor's Teenage Son Mugged near Home

Saturday, 20 Dec 2014 22:32 PM

A spokeswoman for Chicago Mayor Rahm Emanuel says the mayor's 17-year-old son was mugged near the family's home.Spokeswo . . .

Protesters Shut Down Part of Mall of America in Minnesota

Saturday, 20 Dec 2014 22:25 PM

More than 1,500 protesters against police violence shut down part of the Mall of America in Minnesota on Saturday, resul . . .

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