New Jersey's Credit Rating Has Been Cut 8 Times Since Chris Christie Took Office

[ErikJ]

Source: Huffington Post

Standard & Poor's became the latest agency to downgrade New Jersey's credit rating on Wednesday, the state's eighth such downgrade since Gov. Chris Christie (R) took office in 2010. Last week, Fitch decided to do the same. In its statement explaining the move, S&P directly cited major revenue shortfalls and the governor's decision to reduce pension contributions this fiscal year for the state's public workers.

“New Jersey continues to struggle with structural imbalance and the governor's decision to reduce pension contributions in fiscal 2014 and 2015 highlights the fact that the state lacks the revenues to comply with its own agreed-on contribution to the pension system," the S&P said. "In our view, the governor's decision to delay pension funding, while providing the necessary tools for cash management and budget control, has significant negative implications for the state's liability profile.”

Though the downgrades haven't yet had a significant effect on New Jersey's finances, they do present another threat to Christie's political aspirations, especially at a time when he is trying to burnish his credentials at home and abroad. A tough-talking governor linked to a messy bridge closure is one thing, but a governor who cannot manage his state's finances is another -- as Kansas Gov. Sam Brownback (R) recently discovered.

The downgrade drew criticism from Democrats on Wednesday, who called Christie's administration a "national embarrassment."
“From his failed economic record to his administration’s gross misconduct during Bridgegate, Chris Christie has failed his state time and again," said Democratic National Committee press secretary Michael Czin. "And now, it doesn’t even look like he’s trying anymore. Instead of working with Democrats to solve the state’s long-term problems, Christie’s busy crisscrossing the country campaigning for Republicans who apparently want to emulate his failed leadership.”
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Read more: http://www.huffingtonpost.com/2014/09/10/chris-christie-credit-rating_n_5799428.html

[sakabatou]

1. Exihbit 1 of how Republican economics don't work

[ErikJ]

4. Yup-Kansas 1 mo. ago: S&P downgrades Kansas in another blow to Brownback tax cuts

Aug 6 (Reuters) - Standard & Poor's Ratings cut the credit score for Kansas to AA from AA+ on Wednesday in another blow to the deep income tax cuts championed by Republican Governor Sam Brownback, who is struggling to keep his post in upcoming elections.

In a report explaining the downgrade, S&P said the Kansas budget is not structurally balanced and described a fiscal situation with very little breathing room.

S&P noted Kansas relied on a "substantial drawdown" of its general fund balance in fiscal 2014, which ended in June, to cover a revenue shortfall.

"Although Kansas has budgeted for the use of fund balances in fiscal 2015, it has also budgeted for 5 percent growth in 2015 general fund expenditures," it added.

http://www.reuters.com/article/2014/08/06/usa-kansas-ratings-idUSL2N0QC1MO20140806

[mccoy]

9. Sorry to disagree....it's win/win for Republicans

If for some lucky reason there happens to be growth while a Republican is in office....they claim it's their policy. But their policy is to destroy the credibility of the Federal government in the eyes of the masses - except in matters of empire. So Christy ruining the credit of NJ works great for the Republicans because after all - as Reagan said - government is not the answer - it's the problem. It's similar to calling ALL of Congress - a do-nothing Congress....Republicans LOVE that - because it destroys faith in the entire Federal system. LETS NOT HELP THEM!

[blkmusclmachine]

2. ,

,

[Scalded Nun]

3. Unfortunately Their base does not get it

I do not think it is because they are too fucking stupid (although there is an argument for that!), I think their hate and their rage blind them to reality. What the GOP (and their minions) do so well is to keep that hate and rage well-nourished.

[ErikJ]

6. It will still be fun to torture the the supposed RW "fiscal conservatives" with this though.

Even if most will say its a lie. HA!

[BumRushDaShow]

5. Plus a fifth casino scheduled to close

(although good riddance to Trump) and as much as they hounded Corzine, the media has been complicitly silent while they trumpet Christie as the GOP savior (where I suppose Jeb will be a backup ).

[oldandhappy]

7. wow That will make a great campaign ad!

[Historic NY]

8. Presidential timber I say. timber...rotting timber.

[riqster]

10. Or "TIMMMMMMBEEERRRRrrrrrrrr..."

[Psephos]

11. US credit rating has been downgraded during Obama's term.

That brush will paint both ways.

The real "credit" goes to the legislatures, IMO. Governors and presidents can propose agendas, but only legislatures can embody them in law, and fund them.

[SunSeeker]

13. Yeah once, and as a direct result of REPUBLICANS' unprecedented refusal to raise the debt ceiling.

Christie can't blame the Dems for any of the EIGHT times it happened under his watch.

Certainly the legislature (GOP majority House) is to blame for the US downgrade, but Christie's actions/vetoes are directly to blame for New Jersey's downgrades.

[Psephos]

14. you're missing the point n/t

[George II]

15. Christie was responsible for cutting the contribution to state workers' pension plans....

...and that was the primary reason given for cutting the credit rating.

[Psephos]

16. another one who's missing the point

Christie is a douchebag. Jeezus Kryst, I'm not here to defend him. I'm here to point out that that knife can cut both ways.

Your statement is misleading at best. The downgrade isn't for "cutting the contribution to state worker's pension plans..."

It's for delaying the payment for one or two years (i.e., creating a future debt to ease present revenue shortfalls) - and then NOT PRESENTING A CREDIBLE PLAN for how to pay for it then.

In short, he's punting to the future without crafting a credible way to pay for the future obligation.

Which is what the pugs are going to say Obama has done.

Good god, think ahead, man.

[SunSeeker]

18. We're not missing the point, we just disagree with your assertion.

Claiming the US was downgraded under Obama is misleading. It suggests Obama caused it. OF COURSE the GOP is going to lie about Obama. They do it every day. But even if Obama really did cause the US downgrade, Christie caused EIGHT downgrades to NJ. And I mean HE HIMSELF caused them, unlike Obama. I think it IS a good thing to bring up. And if the GOP did bring up Obama, we can point out how the downgrade was not caused by Obama, but every one of the EIGHT in NJ were caused by Christie.

You don't have to assume people are stupid or not thinking or missing the point just because they disagree with you.

[Psephos]

19. ok point taken

I don't think those who disagree with me are stupid. To the contrary, I start with the assumption that each person who engages in discussion has something to offer.

Naturally, I have a point of view, and I'm not afraid to argue it. Look at old posts of mine...I do take some pleasure to surrender an opinion I hold in favor of a better one. Too often, though, the "better" opinions thrown at me are rote recitations of simplistic political memes. I prefer a deeper analysis.

In this case, my point is that fairly, or not, chief executives are judged by what happens on their watch. However, it's the legislatures that deserve the most criticism for the budgets that they alone are empowered to enact. That's bad politics for both governors and presidents who become tarred with the financial consequences of legislative cowardice.

[SunSeeker]

12. And will continue to be cut until he's replaced by a Dem. nt

[Spitfire of ATJ]

17. Doesn't matter. Republicans will claim his policies made everyone rich.