TRENTON, N.J. – There are plenty of good, valid reasons why New Jersey shouldn’t get a federal bailout, Save Jerseyans.
Here’s another: does N.J. even need the cash?
It’s being taken as a given that New Jersey NEEDS federal money. Pronto. Most Republicans aren’t even challenging the premise.
AFP has a different take.
“The federal government will be providing at least $1.9 trillion in total assistance to states and local governments this year,” AFP explains (and details) in its comprehensive report. “That includes $790.7 billion in grants to state and local governments in pre-COVID funding, plus $1.1 trillion in additional support for state and local governments in response to COVID-19.”
The State of New Jersey itself is already getting $2,393,851,157. We’ve previously written about Governor Murphy’s attempt to save CARES Act funding to bail-out pensions. At the moment, flexible federal assistance already available equals 25.27% of what New Jersey spent in 2019. This is also only the tip of the iceberg; AFP has a great liquidity analysis that you should check out.
So isn’t Murphy’s call for a new federal bailout premature? At the very least?
AFP thinks so.
“Calls for even more federal bailouts for states should be rejected. Instead, in addition to the current federal support being provided to states, state lawmakers must enact reforms and spending reductions, and take other measures—such as using rainy-day funds—to address state budget challenges, many of which are the result of fiscal mismanagement prior to the COVID-19 crisis,” the report’s authors added.
Food for thought this long weekend, Save Jerseyans!