State of New Jersey

The trend toward paying down debt, as opposed to tender offers or refundings, to save money cuts across Red state/Blue state lines. New Jersey retired $500 million of debt to produce $160 million of savings.

The White House is expected to announce major grants for non-Northeast corridor projects, including potentially high speed trains, before year's end.

Continued commitments to meeting long-term liabilities under Gov. Phil Murphy were cited as key in a slew of recent bond rating upgrades for the Garden State.

"The latest upgrade is further recognition of the work we have put into responsible budgeting," said Treasurer Elizabeth Maher Muoio.

The New York Fed said the tech sector's employment contraction impact on the New York City economy was unlikely to be significant.

S&P, Fitch and Moody's have all raised their ratings on the Garden State's general obligation bonds within the last week.

Fitch Ratings raised New Jersey's issuer and general obligation bond ratings just days after Moody's Investors Service upgraded its ratings on the Garden State ahead of next week's s $1.1 billion bond sale by the state Economic Development Authority.

Gov. Phil Murphy is behind the push for the Garden State to develop offshore wind power, ramping up from 3,500 megawatts by 2030 to 11,000 megawatts by 2040.

"I'm thrilled to have that opportunity to join the team," Patrick McCoy says. "It's a very important project with regional implications. To be part of that team is going to be very exciting."

The rating agency cited progress on long-term fiscal stability and budgeting in its decision.

Last year the university's investment portfolio grew by 47%, a factor contributing to the university's triple-A ratings.

The upgrade to A-minus from BBB-plus "reflects what we view as material improvement in the state's structural deficit and near-term liquidity," S&P said.

Gov. Phil Murphy proposes to make an additional $1.3 billion deposit into the state’s Debt Defeasance and Prevention Fund.

Moody's said the upgrade reflects continuing strong revenue and liquidity trends, completion of a debt-reduction program and increased pension contributions.

Bonds defeased include state GOs and securities from the New Jersey Building Authority and the Economic Development Authority.

The agency cited “the appropriation of the full actuarial pension contribution in fiscal 2022 for the first time in 26 years" coupled with improved reserves.

A $3.7 billion transfer from the general fund would cover $2.5 billion for retiring and defeasing state debt, and $1.2 billion to backstop capital construction projects.

Regina Egea, president of the Garden State Initiative, analyzes New Jersey's fiscal landscape, including the proposed state budget, unfunded pension liability and deficit borrowing. Paul Burton hosts. (20 minutes)

Dynamics at play in New Jersey include the pandemic, an election year, massive borrowing, significant federal aid and a major pension liability problem.

In their state of the state addresses, the two governors discussed bringing in more revenues.