By L. Tierney, includes “According to the state Treasury Department, New Jersey received a $2.6 billion loan from J.P. Morgan on July 1, the first day of the new state budget. It’s common for states to take out bridge loans like this to manage their cash flow. The problem is that this loan adds yet another item in the debt column – a debt burden that is already overwhelming state residents. The nonprofit group Truth In Accounting estimates that New Jersey taxpayers owe 63% of average income for state expenses. It calculates Per Taxpayer Burden – remaining debt after available assets are tapped – for all 50 states. Much of this debt is retirement contributions not paid each year, as part of employee compensation. Truth in Accounting’s detailed analysis of the 2011 financial report, for example, found the state of New Jersey had $82.7 billion in assets, but most of these assets were not available to pay state bills. …”
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