State Fiscal Policy

Endnotes

  1. Office of Legislative Services, IDA response to OLS Questions, analysis of the New Jersey Budget Fiscal Year 2017-2018, (GASB Statement No. 67 & 68), p 25.  
  2. Moody’s Investors Service, “New Jersey: Finances Unlikely to Stabilize Without Tax and Spending Changes,” issuer in-depth, May 25, 2017.
  3. Office of Legislative Services, IDA response, p 25.
  4. Office of Legislative Services, IDA response, p 26.
  5. Salvador Rizzo., “N.J. credit rating cut for 11th time under Christie,” NorthJersey.com, March 27, 2017.  
  6. Eileen Norcross and Olivia Gonzalez, “Ranking the States by Fiscal Condition,” Mercatus Research, July 2017.
  7. John Mooney, “Explainer: Abbott v Burke, Changing the Rules for Funding Schools,” NJ Spotlight, July 23, 2013.
  8. Lance Roberts, “The Unavoidable Pension Crisis: A Retirement Nightmare.” News Max, April 12, 2017.  
  9. In accordance with recent requirements by the Government Accounting Standards Board — an independent organization that sets accounting and financial reporting standards for state and local governments — states must “quantify and disclose” all retirement benefits owed to current and future retirees.
  10. Office of Legislative Services, IDA response to OLS Questions, analysis of the New Jersey Budget Fiscal Year 2017-2018, (Statutory Funding Status), p 26.
  11. State of New Jersey, Debt Report Fiscal Year 2016, March 10, 2017, p 68.
  12. Based on actual spending in FY2016 ($4.15 billion TPAF + $3.58 billion PERS + $211 million JRS) and estimated to increase modestly over the 10-year interval.
  13. Fitch Ratings analysis of Bureau of Economic Analysis data (personal income per capita); National Association of State Retirement Administrators analysis of most recent state data from 2014 or 2013 (funded pension obligations) via Aaron Kuriloff and Timothy W. Martin, “Connecticut, America’s Richest State, Has a Huge Pension Problem,” Wall Street Journal, October 5, 2015.
  14. Government Accounting Standards Board: “Annual Required Contribution (ARC). The annual required contribution is the employer’s periodic required contribution to a defined benefit retirement plan. It is the sum of two parts: the benefits attributable to the current year of service; and an amortization payment, which is a catch-up payment for past service costs for the Unfunded Actuarial Accrued Liability over the next 30 years.”
  15. New Jersey Pension and Health Benefits Study Commission, “Truth & Consequence,” September 25, 2014, p 17.
  16. New Jersey Pension and Health Benefits Study Commission, Supplemental Report on Health Benefits, February 11, 2016, p 1.
  17. Michael Cembalest, “The ARC and the Covenants, 2.0: an update on the long-term credit risk of US states,” J.P. Morgan Eye on the Market, May 19, 2016.
  18. Revenue estimates are based on OLS analysis, projections impact for FY2021, when the tax increases are fully phased-in.
  19. New Jersey Division of Taxation: “New Jersey Sales Tax Guide,” Bulletin S&U-4, revised May 2017, p 12-14.
  20. Jon Whiten, “New Jersey’s Surge in Business Tax Subsidies Reaches New Heights: Over $4 Billion in Corporate Tax Breaks Awarded So Far This Decade,” New Jersey Policy Perspective, June 2014.
  21. Sheila Reynertson, “Nearly All of New Jersey’s Largest Employers Already Subject to ‘Combined Reporting’ in Other States,” New Jersey Policy Perspective, January 28, 2016.
  22. Brandon McKoy and Ari Rosmarin, “Marijuana Legalization & Taxation: Positive Revenue Implications for New Jersey,” New Jersey Policy Perspective & American Civil Liberties Union of New Jersey, May 2016.
  23. Center on Budget and Policy Priorities, Policy Futures & Economic Policy Institute, “Income Inequality in New Jersey: A Snapshot,” December 15, 2016.
  24. United Way of Northern New Jersey: “ALICE: Asset Limited, Income Constrained, Employed; New Jersey,” 2016.  
  25. Institute on Taxation & Economic Policy, “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States,” edition 5, January 2015.
  26. Mark J. Magyar, “By the Numbers: Analyzing New Jersey’s Tax and Budget Growth.”  NJ Spotlight, May 7,2012.
  27. Office of Legislative Services, “Analysis of the New Jersey Budget: Tax and Revenue Outlook FY 2016-2017,” April 2016, p 13.
  28. State of New Jersey, Tax Expenditure Report FY2018, p 6-13. 
  29. Jon Whiten, “New Jersey’s Surge in Business Tax Subsidies Reaches New Heights.” New Jersey Policy Perspective, June 2014.

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