New Jersey lags in recession recovery
Wednesday, August 5th, 2009
By: Phil Gregory
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Moody's Investors Service says the recession continues to have a big impact on New Jersey revenue and suggests the Garden State's recovery may lag behind the rest of the nation.
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The financial analysis company has lowered New Jersey's credit rating outlook to negative from stable. James Hughes, Dean of the School of Planning and Public Policy at Rutgers University, says it may be several years before there's a recovery of the jobs lost during this recession.
Hughes: There are special sectors of the economy such as pharmaceuticals, telecommunications and the financial industry where New Jersey has significant exposure and we're looking at those sectors to under perform during the recovery to come.
Hughes says there is a bright spot: bonuses in the financial industry in the state will produce more tax revenue than had been anticipated just a few months ago. Even if the state's credit rating is lowered, Hughes says it would not have a major impact since the interest rate for the bulk of the state's debt is already set.