New Jersey's Fiscal Problems

It was reported yesterday in the Star-Ledger and other newspapers that overall state debt grew by $2.2 billion last year to an astonishing $36.5 billion, nearly triple the level of a decade ago. Governor Corzine announced plans to make a small dent into this huge problem by paying down $650 million in outstanding debt, a move that will save taxpayers $130 million a year in bond payments.

The Governor should be applauded for this initiative to reduce debt, as well as his and the legislature's efforts to cut state spending. The fiscal 2009 state budget passed in June was unprecedented because it appropriates $600 million less than the fiscal 2008 budget, which breaks the pattern of significant yearly budget increases. The fiscal 1998 budget was $16.4 billion, compared to $32.86 billion in fiscal 2009.

The above examples represent just the beginning of a long process to repair our state's fiscal affairs. The employer community will know our elected officials are serious about undoing the mess left from past years if they continue efforts to reduce spending in future budgets, as well as figure out how to cut our debt load. Only then will we be able to focus solely on economic growth activities, as well as pay for badly needed transportation projects and other programs.

Let's give state officials much credit for recent activities, but let's also acknowledge that we have a long way to go, which will require much sacrifice from all. If the state returns quickly to poor spending and borrowing habits, New Jersey will only dig itself deeper in a hole.