TRENTON, NJ – Governor Phil Murphy does a good job at putting a positive spin on spiraling further into debt as a state, but Forbes today explained the cold and harsh reality of the Murphy agenda. New Jersey taxpayers are each $58,000 in debt when it comes to the state finances and that’s they are in the worst debt position in the entire nation according to a report by “Truth in Accounting“. According to to the report New Jersey ranks 50th and leads all of the nation’s eight “Sinkhole States”, states that have put their taxpayers into debt.
How bad is it? New Jersey has $24.9 billion available to pay $214.5 billion worth of bills
“NEW JERSEY has held its last-place position since 2014 and needs $57,900 from each state taxpayer to pay off the debt accumulated through fiscal year 2019. New Jersey’s financial condition will most likely worsen as a result of the coronavirus pandemic. The state is considering borrowing more money to help “balance” its budget, but this will cause the state’s overall debt to increase,” the report said.
The report shows that New Jersey went into the coronavirus pandemic in dire fiscal health, and it will probably come out of the crisis even worse. Based upon the state’s latest audited financial report, which is dated before the crisis began, New Jersey had a Taxpayer Burden of $57,900, earning it an “F” grade from Truth in Accounting.
“New Jersey’s elected officials have made repeated financial decisions that left the state with a debt burden of $189.6 billion. That burden equates to $57,900 for every state taxpayer. New Jersey’s financial problems stem mostly from unfunded retirement obligations that have accumulated over the years. Of the $225.6 billion in retirement benefits promised, the state did not fund $95.7 billion in pension and $76.8 billion in retiree health care benefits,” the report said. “New Jersey did not have enough money set aside to weather the current pandemic and fluctuations in the market. According to rough estimates by Truth in Accounting, New Jersey is projected to lose $14 billion in revenue as a result of this crisis. The uncertainty surrounding this crisis makes it impossible to determine how much will be needed to maintain government services and benefits, but New Jersey’s overall debt will most likely increase.”
