Our report in January laid out many of these concerns including:
-big increase in school funding and Stay NJ
-federal costs shifted to states
-loss of debt defeasance fund and pandemic-era aid
New Jersey State Treasurer Aaron Binder says the anticipated structural deficit for Fiscal Year 2027 will be $3 billion, and $4.5 billion for Fiscal Year 2028.
Binder laid out three reasons, including:
1) Projected growth in Medicaid, school funding and property tax rebates,
2) Expected in new state costs for federal programs
3) Pension penalty payments, including $500 million from the 1997 pension bonds.