New Jersey and New York City, two of the municipal bond market’s largest borrowers, lead the biggest week of state and local government sales in a month as issuers test demand after investors pulled $12.5 billion from muni mutual funds in December.
Governor Chris Christie ’s pledge to erase New Jersey ’s budget deficit by disparaging public-worker unions has helped make him a national Republican star. Those who buy the state’s bonds are less impressed.
New Jersey’s pension fund has only two-thirds of the assets needed to pay future benefits, and the gap widened even as Governor Chris Christie boosted employee contributions and froze raises, according to state data.
Four months before he joined Governor Chris Christie’s administration as New Jersey’s chief economist, Charles Steindel recommended a tax surcharge on the state’s wealthiest residents, a view his current boss opposes.