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Is the Day of Fiscal Reckoning Finally Coming to New Jersey , with Massive Tax Increases and State Layoffs a Predetermined Conclusion?

the staff of the Ridgewood blog

Trenton NJ,New Jersey is facing a financial disaster due to loss in revenue and spike in expenses related to the coronavirus outbreak that could be just weeks away, Governor Phil Murphy .  The governor went on, “We are on the brink of having to make very tough and, quite frankly, very unpalatable decisions.”

Murphy has previously warned of “historic” public worker layoffs without federal assistance. “A fiscal disaster is not months away, these decisions will be on our doorstep in just a few weeks,” Murphy said. “Congress needs to act, and act now.”

Over the years Trenton has viewed tax increases as the answer to everything  and taxpayers have viewed moving out of New Jersey as the answer to everything.  Clearly the governor  is laying the foundations for massive tax increases.  Yet will the state finally be forced to trim the fat . Even New Jersey Senate Present Steve Sweeney  has suggested the state could layoff 100,00 state workers .

In March, the State Treasurer disseminated a voluntary disclosure regarding the severe impacts that the COVID-19 pandemic is expected to have on the State’s economy and financial condition, including declines in revenues in gross income taxes, corporate business taxes, sales taxes, motor fuels taxes, casino-related taxes, and lottery sales, among other sources of revenue in both Fiscal Year 2020 and Fiscal Year 2021, as well as negative impacts on liquidity due to the extension of the State tax filing deadline from April 15, 2020 until July 15, 2020.

“New Jersey is not alone in dealing with unprecedented budget challenges right now as this crisis continues to unfold,” said Treasurer Elizabeth Maher Muoio. “Building our reserves to responsible new heights was one of our paramount fiscal goals. However, COVID-19 handed us an entirely new reality. Absent additional federal funding and a substantive borrowing facility, our foremost priority now is ensuring sufficient cash flow to meet this health crisis head on while also meeting our basic obligations.”

Governor Murphy said that he was ,”vetoing numerous bills the legislature sent to my desk to appropriate money to any number of causes and programs. I don’t want to veto them. But given our current fiscal situation, I have no other choice. These discussions aren’t just happening here in New Jersey either. They’re happening across the nation. We need the federal government to step forward with significant investment in our states, both red and blue, to prevent our recovery from being held back because we cannot fund it. Every Governor shut his or her state’s economy to combat COVID-19. We all will feel the devastating impact of this necessary but costly action. Across the country, cuts to critical services are inevitable and bankruptcy is not an option.” Its hard to believe the governor is taking any  serious action of spending cuts , given his raise taxes on everything and if you don’t like high taxes move attitude.

Then the Governor commented on additional state borrowing ,” But even if Congress delivers, it won’t be enough. We will still need to borrow on a short-term basis to bridge our immediate cash flow needs. For weeks I have been working collaboratively with the Legislature to provide our administration this authority, and I asked them today and I asked you to ask them today to pass this legislation swiftly so our frontline responders can breathe a little easier. ” .  Does anyone really believe this , or is more a matter to total fiscal irresponsibility over the last 50 years ?

23 thoughts on “Is the Day of Fiscal Reckoning Finally Coming to New Jersey , with Massive Tax Increases and State Layoffs a Predetermined Conclusion?

  1. The State is broke.
    Increasing the credit card limit because you don’t want to make the tough choices is what got us here.

  2. So don’t diminish the excessive benefits of public sector workers? Or lay them off?

    Let’s just borrow from the federal government to pay out six figure defined benefit pensions to fifty year old retired cops & fire fighters instead!!!! Brilliant.

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  3. I understand the history and purpose of unions – they were very important 50 years ago before there was significant government oversight. BUT, government based public sector unions are now a Ponzi scheme — they are paying themselves and buying votes…

  4. “Is the Day of Fiscal Reckoning Finally Coming to New Jersey , with Massive Tax Increases and State Layoffs a Predetermined Conclusion?

    Correct me if I am wrong, please:
    1 – All government entities’ main source of “income” is tax revenue.
    2 – reduced governments’ “income” can be largely attributed to lockdown – forcing a major portion of the private sector to unnaturally cease operations for an extended period of time.
    2 – NJ lockdown was initiated by Executive order of NJ Gov. on Saturday, 21Mar20, right?
    3 – Lockdown in NJ continues today, right?

    QUESTIONS:
    On what basis and/or experts’ advice did NJ Gov. create his slew of Executive orders as relates to the current pandemic?
    Is the plan to continue lockdown until 01Jun20? (Google thinks so…)
    Is there any whisper or rumor of any plan to re-start business in NJ? (Google can’t find it…)

    HYPOTHETICALS:
    1 – Is NJ Gov purposely maintaining lockdown to intentionally worsen NJ’s fiscal state, or to pander to political interests? Can we believe he would he do that?
    2 – Will the top NJ Executive Officer (former Wall Streeter) donate his salary to the NJ treasury to help offset the loss of tax income? (the top US Executive Officer does – see below.) It would be a very nice gesture…

    https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1341/take-no-salary/

  5. Do you think you’re going to lay off police and fire I’ll believe it when I see it. cut their salaries please. Vogel left a little guy like always. Looks good on paper. Just like last time emergency personnel was never touched it was everybody else.Now is that fair absolutely not.

  6. Yeah meanwhile we’re going to finish that stupid big mall in the swamp. That they can’t even open up anyway. Maybe by Christmas. Remember what was it Over $1 billion taken out of the pension to start that mall. What a great investment

  7. Time for the million dollar plus home owners to start paying their fair share of property taxes. They have been subsided by the other home owners who’s property is worth half the value of the million dollar plus homes. The property tax rate should be indexed like the federal income tax rates. The more your home costs the higher your property tax rate.

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  8. New Jersey taxpayers weren’t paying attention when every Governor since Christine Whitman mismanaged the state budget and spent money on their pet projects, stole money from every Pension system and refused to make the payments they were obligated to make to the pension systems. Now the chickens 🐔 have come home to roost and the taxpayers who failed to stop the pension theft and state budget mismanagement because they were getting homestead rebates and didn’t care. They are now on the hook for their lack of action. Time to pay for your ignorance and stupidity voters. This is your fault for voting in incompetence.

  9. Well I guess we can’t control what’s going to happen. We’re going to lose all the new employees that we just trained. Remember the ones in the bottom go first that’s the law

  10. There is not much to talk about until we restructure the pension fund liability. Let any corporate executive have a look at the state’s payroll. We could have it cut down to size in an afternoon and nobody would even notice a decline in services. There are layers of fat upon fat in that budget.

  11. The unions have pigged out so much

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  12. Tax those big corporate executives bonuses at a higher rate along with the stock options .

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  13. 10% property tax increase coming to a Village near you soon!

  14. All we know is the Village of Ridgewood has hired so many new employees in supervision in the past two years. Why is that. It’s time to cut ties with the Ridgewood water department from the town that should be run separately altogether. It’s a utility and all the employees that work for the water department works for the utility not The village. Remember that. It’s just like all the employees that work for the school system they work for the Board of Education not the village of Ridgewood.

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  15. Tax those big corporate executives bonuses at a higher rate along with the stock options .

    Sounds ok to me. I would go even further though, I’d tax the crap out of the Financial Industry including retirement fund managers. Taxpayers bailed them out in 2008 – 2009 and they have been living high on the Hog since 2016 with massive stock market gains. Time they felt the pain us commoners are having.

  16. All of these anonymous comments seem very unusual…someone trying to get their point across but really too opinionated. What agenda does this anonymous person have?

  17. Yeah, strange from a disgraced retired Fire captain and six figure pension piggie living in Florida who no longer lives, shops or pays taxes here… his poor wife!

  18. So much talk about tax

  19. Comments about what.

  20. 10% property tax increases coming to Ridgewood in the next 12 months

  21. Yeah, strange stupid comments from a disgraced Retirement Fund Manager who couldn’t find a company to hire him here in the United States because his reputation is so bad, so he is overseas working in an Arab country. He comments here while living outside not just the state but the country and he no longer lives, shops or pays taxes here… his poor wife and family!

  22. Love the comments about “paying fair share”
    Shows a special kind of ignorance.

  23. Love the comments about “paying fair share” Shows a special kind of ignorance.

    So you believe that someone who earns around $50,000.00 a year should pay the same taxes as someone who makes $1,500,000.00?

    You are a special kinda moron Ridgewood Tax Payer

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