Here’s an interesting report from New Jersey, where a newly elected governor is trying to tackle some of the nation’s worst state budget problems. The governor, Republican Chris Christie, has concluded that new taxes are not the answer — and no wonder, because the article reports that taxes in New Jersey are the highest in the nation after being raised repeatedly in the recent years. So, the governor is proposing substantial spending cuts, including cuts in the public payroll. Teachers unions predictably are balking.
We’ll find out the outcome of this budget contest soon, because in New Jersey a new budget has to be approved by June 30.