January 25, 2010
Governor Christie today warned New Jersey businesses that they can expect an increase of up to $1,000 per employee in their unemployment tax starting July 1 unless the federal government helps the state replenish the fund. Business taxes are increased by law when the fund’s balance dips below a certain level as measured every March. Christie says the fund will be $1.6 billion in debt by March.
The Governor said his administration will ask the federal government to forgive the debt, but he said the state can’t afford to pump money into the fund to stop the tax increase. New Jersey faces a deficit of more than $9 billion for the 2011 budget year, which begins in July. Christie said that over $3.6 billion has been raided from the fund over the past decade.