NEW YORK (CBSNewYork) — New Jersey’s bond rating just got a little lower, meaning it could cost the state more to borrow money.
Standard & Poor’s announced its action Wednesday, saying the state still has a structural deficit even as the economy is improving.
The general obligation rating was dropped to A-plus from AA-minus.
The state’s debt, its pension obligation and one-time measures that cannot be sustained to fill budget gaps were reasons for the downgrade, according to the report.
The new rating means the state is still considered to have a strong capacity to meet debts but it is more susceptible to changes in economic conditions.
Spokesman for Gov. Chris Christie, Kevin Roberts, said the state is trying to address all the concerns but needs lawmakers to agree to changes in the pension program for public employees.
Paul Sarlo, chairman of the state Senate’s budget committee noted that the Standard & Poor’s report faulted the state for coming up short of revenue projections in the current fiscal year. He said that shows Christie’s administration should listen to lawmakers’ critiques about overly rosy projections to fix the problems.
Check Out These Other Stories From CBSNewYork.com:
- Reward For Information On Death Of Queens Jogger Raised To $300,000
- PHOTOS: Devastating 6.2-Magnitude Earthquake Strikes Central Italy
- Police: 2 Facing Charges After Allegedly Stealing Car, Vodka From Indonesian Consulate
- Gov. Christie To Make Announcement At NJ Motor Vehicle Office
(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)