New Jersey’s State Debt Fastest Growing In The Nation

New Jersey‘s state debt is the fastest growing in the nation, as measured as a percentage of state income, according to a financial analysis released last week. In addition to that new distinction, New Jersey is now the third-most indebted state in the country.

An annual review by Moody's Investor Service reveals New Jersey, with a population of 8.7 million, is the nation’s third-most indebted state with total debt of $29.7 billion, California with a population of 36.8 million ranks number one with total debt of $61 billion and New York comes in at number two, with a population of 19.3 million and total debt of $50 billion.

The Moody's analysis reflects deep borrowing to finance New Jersey's $8.6 billion school construction program, primarily for the Abbott school districts and a decision by former Governor McGreevey to borrow $2.3 billion to offset the $4 billion increase in state spending last year.

New Jersey's current debt load translates into a bill of $3,413 for each state resident, California’s debt equates to $1,658 per resident and New York’s debt to $ 2,591 per New Yorker. By comparison, New Jersey ranked 11th in the nation for indebtedness in 1994 with of debt burden of $780 per person - a remarkably quick deterioration of the state’s financial picture in 10 years.

The politicians in Trenton, led by the Democrats, are bankrupting the state and are driving people out of their homes, as well as, the state with the ever increasing tax burden on New Jersey’s citizens. Piling debt upon debt from ever grander government programs for special interest groups only exacerbates the state's problems. The only way to solve New Jersey’s financial woes and provide tax relief is to reduce government spending, cap the future rate of spending growth and equalize the distribution of state funds to local governments.

Jon Corzine’s call for new and greater “investment“ in New Jersey’s government will only make a bad situation worse should he be elected governor. Bret Schundler and Doug Forrester, the leading candidates for the Republican nomination have introduced fiscally responsible agendas for governing the state that are diametrically opposed to Senator Corzine’s “economic blueprint”.

Doug Forrester clearly recognizes additional “investments”, commonly known as spending taxpayer money or increasing the state’s debt burden, are causes of the state’s problems, not the solution. While we see some flaws in Forrster’s property tax reduction plan, he does address the issue and looks to reduce state spending and crack down on corruption.

We prefer Bret Schundler for Governor because his reform agenda incorporates all elements we believe necessary for turning the state around and providing tax relief – controlling state spending with a constitutional imposed cap, a fair distribution of state aid to municipalities, cleaning up political corruption and lowering property taxes.

The Moody’s report highlighting New Jersey’s debt as the fastest growing in the nation only reinforces the need for a new direction in Trenton. More of the same - ever growing government spending, taxes and debt with Jon Corzine or a new direction with a Republican willing and able to lead the state toward fiscal sanity and responsibility? The choice seems so obvious - we have five months left to make the case.