DON'T BELIEVE US? JUST ASK MOODY’S
TRENTON (October 11, 2016): The National Federation of Independent Business (NFIB) is the state’s largest small business advocacy group. They are also the SOLE business group in New Jersey to publicly oppose the 158% gas tax increase passed by the legislature by both houses last week. Residents will begin to feel the impact shortly after it becomes law however, today, NFIB is gently reminding Governor Christie that it’s not too late to send lawmakers back to the drawing board by vetoing the bill currently on his desk.
“In light of Moody’s recent revelation that the new plan will be yet another deterrent for economic growth, it is imperative that the Governor consider vetoing the Transportation Trust Fund (TTF) bill. A hit of one billion dollars over the next five years to our general fund in insurmountable,” according to NFIB New Jersey state director, Laurie Ehlbeck. “We are already burdened with the fatal combination of rising pension costs and stagnant revenue growth. The last thing the state needs is to be strapped with more debt.”
According to Moody’s Investors Service, the overall impact of the TTF bill is credit negative thanks to the impending strain it will create for New Jersey’s operating budget. While the rest of the country has seen double-digit revenue growth following the great recession, the Garden State has yet to achieve pre-recession levels, hovering at seven percent growth in 8 years.
“New Jersey’s credit rating has been downgraded nine times in six years. Considering the intense focus that has recently been placed on infrastructure improvement projects, making it more expensive to borrow money will only further deter the very thing that legislators supposedly raised the gas tax to fix,” continued Ehlbeck. “It’s not too late for Governor Christie to encourage long-term structural changes that will benefit roads, bridges, and taxpayers alike. The small business community has already given up any hope of a better TTF funding outcome, but his veto would certainly be a welcomed surprise.”
