Earlier today, the New Jersey Supreme Court ruled in favor of Governor Murphy’s plan to borrow funds from the federal government to balance the state budget. In response to this decision, New Jersey Policy Perspective (NJPP) releases the following statement.
Sheila Reynertson, Senior Policy Analyst, New Jersey Policy Perspective (NJPP):
“Today’s ruling is great news for New Jersey, as it will set the stage for a stronger and faster pandemic recovery. While borrowing should always be viewed with skepticism, the COVID-19 pandemic necessitates this plan. New Jersey is facing unprecedented revenue shortfalls over the next three fiscal years. Without federal borrowing to support state and local governments, lawmakers would be forced to slash critical programs and services at the precise time they are needed the most. We’ve seen the damage caused by a cuts-only approach before. It not only devastated local economies and caused unnecessary hardship, it deepened the Great Recession and hampered New Jersey’s economic recovery. Catastrophic budget cuts during a global pandemic are a nonstarter.”
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