Economic experts are predicting cities in New Jersey may be about to experience some of the worst impacts from the recession, according to a report by NJ.com.
Experts say property tax collections are expected to drop, causing the chance for some cities to default on their debts, making it harder to borrow money.
According to the report in NJ.com, those cities already struggling the most are preparing for layoffs.
The predictions came Friday during an economic forum at Rutgers University, in which several local mayors were in attendance.
One expert at the forum called the situation an “unprecedented period of economic stress for state and local governments.”
Economists believe cities in New Jersey managed to hold off any gaps in revenue when the recession hit because of delays in the property tax system. Economists say the so called grace period has come to an end.