Politics & Government
State's Bond Rating Slips; Freeholders Criticize
Credit rating cut panned by freeholders, who see it as an indication of further economic woes
A Standard and Poors downgrade of New Jersey’s bond rating is “bad news’’ for Garden State taxpayers, Ocean County Freeholder John C. Bartlett Jr. said yesterday.
“Moody’s will follow suit,’’ with a downgrade of its own, making it more expensive for New Jersey to borrow money, Bartlett explained.
His 30-year stint at the helm of the county’s financial ship of state has reached its destination, an AAA bond rating, the highest available.
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That is three grades higher than the rating agency’s AA view of the creditworthiness of the state, he said.
“That’s significant,’’ he said, noting that the average income in the county is only 80 percent of that for the state.
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“They haven’t paid their bills,’’ Bartlett said, laying the blame for the state’s financial mess at the feet of lawyers of both parties over the years.
“They haven’t made a pension payment in 15 years. We pay our full freight every year. It’s a sorry situation,’’ Bartlett said.
The economic downturn has worsened the problem. In Toms River that translates into the toughest challenge the sitting freeholders have faced in trying to craft a budget.
“We will maintain our stability,’’ Bartlett said. He said the drop in the state’s bond rating will mean counties and municipalities in the state also get tougher scrutiny from the rating agencies and lenders.
Freeholder Gerry P. Little said the state not only failed to make payments to the pension system, but lawmakers cut the retirement age and increased benefits, compounding the problem.
