More on the New Jersey Revenue Drop

New Jersey May Face Budget Cuts as Revenue Trails Targets, Lawmaker Says – Bloomberg.

The N.J. Department of Labor said today that the state unemployment rate has fallen to 9.1% as more of the unemployed drop out of the benefits roll.

Jobs creation in the state has been essentially insignificant since the summer.

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N.J. Revenue Continues to Fall: Budget Cuts Possible

N.J. officials debate budget cuts as state revenue continues to fall short of projections | NJ.com.

Even as the national economy experiences a modest rebound, New Jersey’s revenue, which is a reflection of the state’s economic activity, continues to fall. While the administration has been very effective at propaganda and hammering of the public sector unions, it has shown a terminal inadequacy in the economic field.

At the core of Christie’s failure to revitalize the New Jersey economic life is his adherence to ideological models that have been empirically proven ineffective.

We face very complex economic challenges and we need widespread reforms to face then. Neither political party will undertake those reforms because they would mean the end of their enormous privileges.

New Jersey first-fiscal-quarter revenue dives below projections

Treasury: N.J. first-quarter revenue collections missed projections by 7 percent | NJ.com.

The drop is substantial and the administration is blaming the weather. We must wait to see the second quarter figures to find out if this was a weather-related blip or if the policies of the administration are ineffective and the state economy is contracting.

Coincidence or not, the drop in revenue accompanies the drop in the number of employed residents by 25,100 in August. 16,000 of the jobs lost were in the private sector.

Existing home sales drop. U.S. Treasury considers plan to help distressed homeowners.

http://www.bloomberg.com/news/2011-07-20/existing-home-sales-in-u-s-fell-0-8-in-june.html

http://www.bloomberg.com/news/2011-07-20/treasury-explores-plan-to-help-1-million-u-s-homeowners-avoid-foreclosure.html

Rising unemployment and family finances under stress are the major culprits since there are no significant loses in the stock market. Property taxes act as a damper in the housing equation. More than ever it is necessary to revamp the way government collects revenue and do away with property taxes in New Jersey.

The U.S. Commerce Department reported yesterday that there was a jump in new housing starts in June with reference to May.