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New Jersey Credit Rating Downgraded ahead of Governor Murphy’s “Crazy Eddie” Borrowing Scheme

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the staff of the Ridgewood blog

Trenton NJ, S&P Global Ratings downgraded New Jersey’s general obligation bonds to BBB-plus from A-minus Friday afternoon based on steep revenue losses triggered by the coronavirus. Citing economic headwinds caused by the ongoing COVID-19 pandemic, the rating agency took the action ahead of the state’s planned $4 billion-plus GO sale this month, after two other agencies affirmed the state’s rating. S&P also revised the credit outlook to stable from negative.

Governor Murphy’s “Crazy Eddie” Borrowing Scheme

https://theridgewoodblog.net/governor-murphys-crazy-eddie-borrowing-scheme/

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$4 billion in New Borrowing Submitted by Governor Murphy is Wholly Irresponsible

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the staff of the Ridgewood blog

Trenton NJ, Several bills up for committee votes today will make the proposed FY2021 budget revision go from bad to worse, the New Jersey Business & Industry Association testified today.

NJBIA Vice President of Government Affairs Christopher Emigholz told the Assembly and Senate Budget committees today that adding another $500 million in borrowing to the already unnecessary $4 billion in borrowing submitted by Gov. Phil Murphy is wholly irresponsible.

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Governor Murphy’s “Crazy Eddie” Borrowing Scheme

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the staff of the Ridgewood blog

River Vale NJ, Assemblywomen Holly Schepisi ,”Only in New Jersey could we increase spending by BILLIONS, borrow BILLIONS in dollars because we allegedly can’t pay our increased spending, increase the gas tax during a pandemic to the fourth highest gas tax in the nation, cut programs like mental health services for at risk youth (a program that has been in place since the 1980s and has assisted children with mental health, employment, pregnancy prevention, drug abuse education and more) and then announce a program to give free cash starting next year to anyone who gives birth.
It is the equivalent of paying for your neighbor’s HULU account so they can watch Handmaid’s Tale while your own home is in foreclosure. The State of NJ is proposing to borrow money at a cost of $80 million in interest payments to the tax payers in this State in order to issue free “Baby Bonds” that will yield only a 1.35% return over 18 years or an approximate total of $21.6 million in interest. How does this make any sense whatsoever?”
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NJ CPAs Strongly Oppose Governor Murphy’s 2021 Budget Borrowing and Tax Scheme

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the staff of the Ridgewood blog

Roseland NJ, More than 60 percent of the 892 certified public accountants (CPAs) surveyed by the New Jersey Society of Certified Public Accountants (NJCPA) after Governor Murphy presented his budget for New Jersey’s 2021 fiscal year on Aug. 25 said they were either “somewhat opposed” or “strongly opposed” to $4 billion in new borrowing to offset a revenue deficiency caused by the COVID-19 pandemic. More than three in four respondents (78 percent) felt the proposed budget would make the state’s economy “marginally worse” or “significantly worse” over the long term.

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State Revenue Update Undercuts Governor Murphy’s Borrowing Scheme

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the staff of the Ridgewood blog

Trenton NJ, Senator Steven Oroho (R-24) said a State revenue update provided by the Treasury Department yesterday doesn’t support Governor Murphy’s claims that New Jersey is facing a massive budget shortfall that would require $10 billion of borrowing as the governor has repeatedly suggested.  (https://theridgewoodblog.net/deferred-nj-april-tax-payments-track-close-to-expectations/ )

“Treasury’s revenue update clearly demonstrates that the massive $10 billion budget hole predicted by the administration has failed to materialize,” said Oroho, the Senate Republican Budget Officer. “When compared to the original $38 billion budget for 2020, the $200 million decline in revenues from 2019 is little more than a rounding error. The realized revenue data provided by Treasury doesn’t support the governor’s continued insistence that New Jersey needs to borrow billions.”

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