On March 11, 2015, we posted a blog wherein Senator Sweeney stated that Governor Christie needed to change his tactics at the bargaining table regarding pension reform and if he instead concentrated on “growing” New Jersey’s economy, additional tax revenue would be created that would result in more money to fund the Public Employees’ Pension System. A new study that was recently released show’s that the Senate President was on point with his comments. As reported in NJ.Com, New Jersey’s tax revenues have recovered at the sixth slowest pace in the nation five years after the Great Recession. The analysis by The Pew Charitable Trust is another indicator the state’s economic recovery trails nearby states and national trends. Additionally, New Jersey ranks near the bottom of states in private sector job growth since the recession ended.
According to the study, the Garden State is in the company of 29 other states whose tax collections had not fully rebounded since the middle of the Great Recession, when accounting for inflation and seasonal revenue fluctuations. New Jersey collected $7.5 billion from July to September last year, an 11.4 percent drop from its peak from July to September 2008, according to the study. The report further states that New Jersey was one of just 10 states where revenues during that period were down more than 10 percent from their 2008 highs.