Contact Us
Make My Homepage

Study Shows NJ Has Made The Nation’s Most Severe Budget Cuts [AUDIO]

A new study by the Center for Budget Policy Priorities finds dozens of states have gone through great struggles to balance their budgets since the Great Recession began in 2003 – but no state has had a tougher time – and made more severe cuts than New Jersey.

Stacy Proebstle, Townsquare Media

An analysis by 24/7 wall-st-dot-com ranks the Garden state 4th in the nation when it comes to having the toughest time paying its bills – even though by law New Jersey must produce a balanced budget by the start of every new fiscal year at the beginning of July.

Rutgers economist Joe Seneca says the bottom line here is that, “New Jersey’s economy is on the mend… the rate of improvement certainly needs to be accelerated and that’s recognized by everyone, but private sector employment is coming back…yes, the state like many other states has had significant fiscal problems during the recession, particularly as tax revenues were sharply curtailed…we’ve been through some difficult times, other states, many states, all of the states almost have had similar difficult times, but we have had fiscally balanced budgets.”

He says it is true that in fiscal year 2012, year-to-date tax revenues are up over the previous 6 months, July through December, “but they are falling short of expectations in terms of the revenue estimates that were adopted for this budget- and that’s an issue going forward.”

Seneca adds it’s no secret that housing prices have dropped across the country – “sure, the housing sector has been the sick man of the economy back through 2008, and it’s now 2012 and it’s still the missing link in the economic recovery – we have seen some positively signs, but has the housing sector been a problem? Yes- is it still a problem – absolutely…as we recover from the Great Recession, it’s a long road back – a very long road back – we lost well over a quarter of a million jobs -private sector jobs – during the recession… continuing to grow the economy – with private sector jobs – is one of the keys to the comeback – New Jersey has to be ever-vigilant to become a good place to invest and we’re on the right track.”

As for the 24/7 wall-st analysis, he says “I’m not sure this study really tells us anything of use.”

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of NJ101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.