June 2022 - Combat Inflation in New Jersey with a

New Jersey’s legislature and governor are in a unique position to use the current budget surplus, over $8 billion by many estimates, to help residents with inflation and well- position the state for a likely recession. [...] Some of the surplus is due to the economic recovery in 2021, the borrowing of $4 billion in 2020, and federal pandemic recovery funds that were made available to states to support “long-term growth and opportunity”.1 To date, most policy proposals being discussed do not support the goal of long-term growth and opportunity. [...] Due to poor investment returns and actuarial mistakes in the current defined benefit pension system, the State Legislature has continually been forced to make up the difference with extra cash. [...] To prepare for the future when New Jersey again faces a budget shortfall, which may be sooner than we think, New Jersey should follow best practices of reserving 10% of the budget, or no more than $5 billion, to sustain essential programs should a downturn occur in the future. [...] About The Garden State Initiative The Garden State Initiative is a 501(c)3 nonprofit organization dedicated to strengthening New Jersey by providing an alternative voice and commonsense policy solutions in the state -- solutions that promote new investment, the growth of businesses, the creation of economic opportunities, and innovation to the benefit of all New Jerseyans.