Star Ledger Reports: Gov. Chris Christie added just over $1 billion more to New Jersey’s already heavy debt burden, but his administration is borrowing money at a slower rate than governors before him.
New Jersey’s debt grew by 3 percent, to $38 billion, largely to pay for road, bridge and rail projects, according to a report released Friday by the state Department of Treasury.
The annual report calculates New Jersey’s aggregate bonded obligations — debt approved by voters, lawmakers and other state agencies that eventually may be repaid by taxpayers. That debt increased by $1.15 billion from July 1, 2010, to June 30, 2011, the period tracked for the report.
It’s the second such increase under Christie, who has been an outspoken critic of the borrowing allowed by previous governors.
Last year, the state’s aggregate bonded obligations rose nearly 4 percent, for which the governor largely blamed borrowing approved before he took office in January 2010. The rate of increase was closer to 5 percent in the 2009 report, and neared 7 percent in the 2008 edition.
“The rate of borrowing has dramatically dropped off,” said Andrew Pratt, a spokesman for the Department of Treasury. “We are not digging as deep a hole as we used to.”
Still, the 2011 report shows New Jersey is deeper in debt than most other states, a distinction that’s been building for years as borrowing increased by nearly 700 percent over the last two decades during Democratic and Republican administrations.
New Jersey trails only California and New York when it comes to gross tax-supported debt and is fourth behind Connecticut, Massachusetts and Hawaii when per-capita debt is calculated.
