Growing Difficulties on the Budget Front

June 12, 2014 in Real Estate

The “Lagging Economic Performance” of New Jersey

The past few years have been hard for Governor Christie. Supposedly the budget difficulties have been around longer than his administration, but he is getting the brunt of the blame. No matter the cause, something has got to change. Otherwise infrastructure difficulties will continue to worsen and fewer individuals will wish to populate the Garden State.

Current Budget Shortfalls

The New Jersey state budget is $807 million in the hole. Can this be “plugged” by the end of the fiscal year? The deadline is fast approaching (June 30) and the past few years does not make this look likely. Christie’s projections for growth have been short by billions. If accuracy is off by so much, how can anybody expect results?

Why Are Budget Projections Proving to be so Unrealistic?

Every year

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there seems to be a widening gap between how much money is predicted to come in and how much can be spent on various projects around the Garden State. There is a large problem: the money is not coming in and therefore is not actually available for use. This creates quite a predicament. Progress is not possible because the funds are not available. Why is the gap getting bigger as time goes on? It seems like predictions should get closer year

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after year. Issues from previous years have not been fixed but budget projections do not account for it. For anything to change, the plan for bringing money into the state needs to be altered in a positive manner.

How Are Budget Shortcomings Being Handled?

The current system is lacking certain efficiency. It uses techniques to cover existing holes. Patches can only do so much, however. If the government is constantly repairing what is visibly problematic, it cannot expend the necessary energy to find

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new (and better) sources of income. Stable revenue sources will prevent the budget holes from widening further. They will also slowly repair the damage that has been impacting the New Jersey budget for years. Eventually, the money will be available to improve state infrastructure. Fewer catastrophes, like that involving the George Washington Bridge, will darken the governor’s administration.

The Outlook for Next Year’s Budget

Currently, the budget complications remain. But this can always change! Some areas of New Jersey are doing quite well and may be able to help lift the rest of the state to their standards.

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