N.J. facing another drop in credit rating

Standard & Poor’s has warned New Jersey that it could lower the state’s credit rating within 90 days, depending on the outcome of budget deliberations and other developments.The agency placed the state’s general obligation and other debt on credit watch Monday, basing the move on a growing structural budget imbalance and increased reliance on one-time measures to balance the budget.

Three Wall Street firms, including S&P, downgraded the state’s bond rating this year, making it more expensive for the state to borrow money.

Gov. Chris Christie plans to delay a payment to the state pension system to close an unexpected $2.75 billion budget gap through next June.

Christie also gave pay raises averaging 23 percent to nearly 20 percent of his staff.