Monday, May 04, 2009

June 25th, 2009: The day New Jersey dies?

Via Bob Ingle, we learn that the state of New Jersey has a pretty big bill coming due next month, and it seems as if the state may not be able to pony up the dough:

On June 25, New Jersey is due to repay $1.8 billion plus interest the governor borrowed to make tax rebates. Word came late this week that revenue projections are $1.5 million to $2 million short of what they expected.

Will the state be able to pay the debt? The governor has been silent on that, which has Sen. Marcia Karrow wondering what’s up.

“The governor should say now where he will find the money to make that huge balloon payment. He may very well be forced to seek layoffs of government workers, more delays of payments into our evaporating pension funds or even more cutbacks in school or municipal aid.”

The literal destruction of New Jersey is a trifle to Jon Corzine, who is too busy playing hide and seek with state Republicans (when not on the road whoring himself for out-of-state campaign contributions)...Karrow, again:

Despite repeated pleas from Republican legislators, the governor has refused to either release daily updates of state revenue collections during budget negotiations or restrain spending sufficiently to reflect economic reality. With just two months remaining in the fiscal year, most of the money the state budgeted to spend this year is already gone..."

Read that last line again. Most of the money is gone, and we have a $1.8 billion dollar payment coming due in just over six weeks. Will New Jersey be the first state ever to face the shame of being forced to declare bankruptcy?

Well, shame nonwithstanding, I think a forced financial collpase could be a good thing. Let a federal court eliminate a portion of the billions of dollars in entitlement spending that is draining the state's middle class. Let a bankruptcy judge force new work rules for the fattened state unions and its pampered government employees. And let us be a lesson to the rest of America, that our shameful path is destined to be followed by the United States as a whole if we don't stop the insane taxation and spending spree that Barack Obama and the Democratic party have embarked upon.

If our death can save America's future, then the sacrifice of New Jersey's middle class will not have been in vain...

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