As Revenues Rise, NJ Thinks About Next Downturn

May 11, 2022 | njspotlightnews.org

Discussions about the surplus and budget reserves may seem esoteric and mundane, but how well New Jersey is prepared for the next recession can have huge stakes for a wide swath of taxpayers. That’s because revenue losses amid a major economic downturn have the potential to significantly upset the annual budget.

NJ SEED: State government continues to be awash in money due to strong tax revenues and borrowing of $4 billion prior to the last gubernatorial campaign. Lawmakers who may be tempted to launch new entitlement programs would be well advised to heed the counsel of Treasurer Muoio which is to remain cautious in the face of runaway inflation.