Hey Corzine! Paying down 130 mil while borrowing 3.9 bil is not paying down debt!

Posted on 25 June 2008

This just in from Forbes:

Gov. Jon S. Corzine on Wednesday created a new state fund to pay down debt, a move meant to push the state long plagued by budget woes away from using one-time revenues to balance spending.

“The goal is to constantly be pushing to pay down debt,” Corzine said.

The law puts $684 million into the fund, of which $650 million will be used to reduce debt service by $130 million for the next five years.

The Governor and the Legislature are all slapping each other on the back today because for the first time, they didn’t take a surplus and spend it.

The $684 million comes from unexpected tax revenue collected this fiscal year and other savings.

You do know what a tax surplus is right? The government ‘accidentally’ has too much of your money. Let’s try a hypothetical.

If you place $1.75 worth of merchandise on the counter and hand the clerk a ten dollar bill, and the clerk gives you back $18.25 (and you want to do with right thing), do you:

a. Spend it.
b. Take it to the bank and pay down your mortgage.
c. Give it back to the clerk.

If you said a, you are destined for the legislature. If you said b, you too could be Governor. If you said c, you are probably following a moving van on your way to live in another state.

Category: Corzine, NJ Legislature

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Hey Corzine! Paying down 130 mil while borrowing 3.9 bil is not paying down debt!

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