State Treasurer Paints Dismal Picture to Assembly Budget Committee

May 28, 2020 | insidernj.com 

Appearing before the Assembly Budget Committee on Thursday, May 28, Treasurer Elizabeth Maher Muoio detailed the bad news for the economy – both national and state – as a result of the response to the COVID-19 pandemic.
Among the depressing statistics sited by the Treasurer:

• Estimate of near 25% drop in GDP in 2^ndquarter of this year.
• Continuing rise in NJ unemployment
• Recovery to pre-COVID-19 economy – not until mid-2022
• National unemployment rate expected to be nearly 10% by late 2021
• Many people will be in arrears or default on mortgages, rent, utilities and other debts for foreseeable future
• As they reopen, many businesses will face back rent and supplier invoices while demand for goods and services will be slow to return.

Meanwhile tax revenue will continue to be down with estimated shortfalls for FY 2020 and 2021 combined expected to approximate $9.94 billion.

NJCFE: The need for a solid foundation of financial education and the ability to make informed decisions may never have been greater.

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