With billions in extra cash, Moody s upgrades NJ outlook njbiz.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from njbiz.com Daily Mail and Mail on Sunday newspapers.
Extra billions in tax revenue prompts Wall Street to give N.J. brighter credit outlook
Updated 7:34 AM;
New Jersey’s tax revenues are on track to outperform expectations this year by more than $3 billion, prompting a Wall Street rating agency Friday to raise the state’s credit outlook to “stable.”
The move by Moody’s Investors Services comes almost exactly one year after the firm lowered New Jersey’s outlook to negative amid the first wave of the coronavirus pandemic and fears of economic collapse.
Moody’s said at the time the negative outlook reflected its expectation that with low reserves and big structural deficits the state would struggle to make ends meet during the health and economic crises. Just a week later, New Jersey was hit with a downgrade to “A-” by Fitch Ratings the state’s first downgrade since 2017.
Will Phil Murphy buy re-election with borrowed bucks? | Mulshine
Updated 6:36 AM;
Today 6:36 AM
If you get five of these in the mail will you be more likely to vote Democratic in November?
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So maybe it will work for our current governor.
Byrne was the last Democrat to be re-elected governor in New Jersey. That was back in 1977.
At the time, the governor was known as “One-Term Byrne” because of his success the prior year in getting the first state income tax enacted. The Republicans believed this would lead to Byrne’s loss the following year. But Byrne outsmarted them by sending out some hefty property-tax rebate checks the month before election – all bearing his signature of course.
Murphy defends $4B borrowing, slams ‘Monday morning quarterbacking’
Updated Apr 07, 2021;
Posted Apr 07, 2021
The governor said during a coronavirus briefing his decision to borrow $4 billion in the fall was made with the best information available at the time.Michael Mancuso | NJ Advance Med
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Gov. Phil Murphy pushed back Wednesday against criticism that he acted prematurely in borrowing $4 billion to plug a projected budget hole last fall, saying “We make the decisions at the time we make them based on the best information we have.”
The Democratic governor, up for re-election this year, defended the decision to borrow billions of dollars as the state was facing another surge and the prospect of more lockdowns and took aim at Republican lawmakers, who in hearings Tuesday and Wednesday blasted the borrowing as hasty and unnecessary.
Credit: Amanda Brown
Richard F. Keevey
As I noted in a recent article, New Jersey is in the best overall fiscal shape it has experienced in quite some time. However, these good times are not likely to last. As such, the state should be mindful of its current budget decisions, and especially their long-term fiscal implications. This caution applies to both spending and tax/revenue policy decisions. But there’s an important policy tool for identifying any potentially adverse long-term impacts of current tax and spending policies as well as policy changes currently under consideration.
A current-services budget projection shows the future i.e., over the next three to five years implications of budget decisions made today, given likely future demographic trends, inflation, and potential changes in the economy. Current-services projections are especially useful in that many fiscal policies are back-loaded, with the lion’s share of impacts occurring in outlying years. If a curre