Putting aside the problems due to the New Jersey public employees pension crisis, New Jersey is deep in the hole despite the fact that a growing economy has eliminated statewide budget deficits across the country.
So how did New Jersey get into this mess? Too much spending for starters. And then spending even more despite the fact that the revenues coming in from taxes and fees were insufficient to cover costs.
Despite the profligate spending, the Transportation Trust Fund is going broke and so is the School Construction Fund, both of which are crucial to the future success of the state to grow and flourish. The transportation fund will likely need to have an infusion from an increase in the gas tax. That fund is crucial to providing money for rebuilding bridges, roads, and mass transit systems throughout the state. However, it's also been called upon to fund operating budgets, which further depletes the fund.
The school fund was thoroughly mismanaged and spent all of its money on a mere fraction of the hundreds of school construction projects statewide.
How will New Jersey Governor elect Corzine fix the problem? He'll raise taxes. Count on it. Property taxes? They'll go up. Gas tax? That's going to go up to. Fees and costs? That'll go up too.
It wont necessarily be the income or corporate income tax that sees an increase, but it might be the real estate transfer taxes, in the hope of pulling yet more money in from property transactions and rising land values throughout the state.
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