N.J. Will Borrow $4.5 Billion as Pandemic Pain Hits States

It is one of the first states to take on debt to plug a budget hole created by the impact of the coronavirus.

New Jersey officials on Thursday approved a budget that hinges on borrowing $4.5 billion to cover basic operating costs, making the state one of the first to take on debt to plug a gaping financial hole during the pandemic. Gov. Philip D. Murphy and his fellow Democrats who control the Legislature argued that the step was needed to avoid deep cuts to essential services, including education, transit and health care, in the absence of a deal in Washington on a stimulus bill. Across the country states and cities have been pummeled by declining tax revenues and unparalleled levels of unemployment.