NJ Watchdog: Worse news - state debt hits $170 billion

For New Jersey taxpayers, the bad news is even worse than a report showing their state government is $160 billion in debt.

The deficit is actually $10 billion higher than that – a whopping $170 billion – according to State Treasury records obtained by New Jersey Watchdog.

In a national study released Monday, Truth in Accounting, a non-profit advocate of governmental transparency, calculated that state governments have racked up $1.3 trillion in debt.

The report ranked New Jersey dead last among states with a burden of $52,300 per taxpayer, the highest in the country.

But it didn’t count a new valuation that found the state’s responsibility for unfunded retiree and employee health benefits has increased to $65 billion. That hikes the Garden State’s deficit per taxpayer to $55,550 – a figure that also includes pensions, bonds and other liabilities.

“I urge Gov. Chris Christie and his administration to acknowledge their state’s true debt and address this situation immediately before New Jersey sinks further into debt,” said Sheila Weinberg, CEO of Truth in Accounting.

The complete story is online at http://watchdog.org/239085/new-jersey-debt-170b/.

NJ Watchdog: State debt hits $52,300 per taxpayer

Dead last: NJ debt hits $52,300 per taxpayer, study shows

New Jersey ranks worst in the country for state debt, according to a new nationwide study.

Each state taxpayer would need to pay $52,300 to erase New Jersey’s existing bills – including public pensions and retiree health benefits – reports Truth in Accounting, a think tank in Chicago.

Among “sinkhole states,” New Jersey was followed by Connecticut, $48,600 debt burden per taxpayer; Illinois, $45,000; Kentucky, $32,600; and Massachusetts, $27,400.

In the past year, the debt per taxpayer in New Jersey increased by $16,300, or 45 percent, according to the non-profit group.

The findings are consistent with a New Jersey Watchdog analysis of State Treasury records that found the Garden State’s pension and health benefit deficit for public workers is nearing $200 billion.

Earlier this week, New Jersey Watchdog reported:

• New Jersey’s public pensions are underfunded by $113.1 billion. The state bears $80.5 billion of that burden. Local governments are responsible for the remaining $32.6 billion.
• State and local governments are also on the hook for $81.4 billion in unfunded health benefits for retired and active workers. The state owes $65 billion; the local share is $16.4 billion.
• The total shortfall is $194.5 billion – more than $60,000 per household. The figure is nearly six times higher than New Jersey’s total annual budget, currently $33.8 billion.

At the present pace, those unfunded liabilities will exceed $210 billion next year.

The full story is online at http://watchdog.org/238675/nj-debt-taxpayer/.