Moody’s downgrades New Jersey credit rating
MAY 13, 2014, 8:45 PM LAST UPDATED: TUESDAY, MAY 13, 2014, 8:46 PM
BY JOHN REITMEYER
STATE HO– USE BUREAU
THE RECORD
For the third time this year a major Wall Street ratings agency has lowered New Jersey’s credit rating, citing revenue shortfalls and other budget problems.
Moody’s Investors Service announced Tuesday that it was downgrading the state’s credit rating by one step because of New Jersey’s “weakened financial position resulting from recurring revenue shortfalls and ongoing reliance on non-recurring resources.”
Last month, the state Department of Treasury made public an $807 million budget shortfall and said it was largely due to income tax collections falling short of the estimates used to support state spending. The gap between what officials expected to collect in taxes and what people actually paid is the latest in a series that Governor Christie has had to deal with since taking office in early 2010.
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