NJ Faces Catastrophic Fiscal Crisis, According to Pew Center Study
The Pew Center on The States finds that New Jersey's fiscal crisis is nearing the same severity as the crisis facing California
HIALEAH, FL - OCTOBER 30: Madelin Santana shows off the money she received for selling gold jewelry at the FastCashGoldParties.com party on October 30, 2009 in Hialeah, Florida. As the price of gold remains high, the company is busy setting up these modern day Tupperware parties to buy people's unwanted gold in their homes. Many attendees come to the parties for a little extra cash to help pay bills or to get rid of unwanted jewelry while prices for gold are so high. (Photo by Joe Raedle/Getty Images) *** Local Caption *** Madelin Santana
New Jersey is on the brink of economic disaster, according to a study out Wednesday. The Pew Center on the States says New Jersey is one of 10 states headed for a severe budget crisis if the economic climate doesn't stabilize. California has gotten national attention for it's ongoing fiscal crisis, but according to the Pew Center New Jersey is almost as vulnerable.
Why is New Jersey faring so pourly compared to other states? The Pew Center study found that the most troubled states face rising unemployment and high home foreclosure rates. It has cause tax revenues to drop by double-digit percentages. The result could be higher taxes, more layoffs of government employees, more over crowded schools and over all fewer state services.
So, what's next? Governor Elect, Chris Christie, has reportedly said he is considering declaring an economic state of emergency so that he can layoff government workers. Promises to slash the bloated budget was a centerpoint of Christie's campaign and, some say, it is what ultimately got him elected.
New Jersey faces an 8 billion dollar gap in the budget for the next fiscal year. Sitting New Jersey Governor, Jon Corzine, told department heads a few days ago to make another 400 Million dollars in cuts for the remainder of the current fiscal year.
Copyright Associated Press / NBC New York