We need 19, 20% surplus because I’m ‘certain’ the US economy will ‘soften up’

On Friday’s broadcast of Bloomberg’s “Balance of Power,” New Jersey Gov. Phil Murphy (D) said a budget surplus of 19% to 20% was the right approach because it is “certain” that the American economy will “soften up”. .”

Host David Westin asked: “[D]o you think managing something like a 19% to 20% surplus is the right place to be here, or later do you think investing it? »

Murphy replied, “I think for now at least, David, this is the right place. And part of the reason isn’t just to regain our reputation for fiscal responsibility and hopefully earn more upgrades, I still worry about what’s happening in the economy. I’m far from the deep concern about a real cliff like we had in 2008 and 2009, but we’re going to soften up. I’m sure, as a country, probably as a world, but certainly New Jersey will not be immune. And that rainy day money is there for a reason, so we don’t have to cut programs like property tax relief or record school funding, to choose two uses of our income. So that’s another reason why I want to make sure, at least for now, that we have a good foothold.