The state of New Jersey is constitutionally forbidden to borrow money to meet its annual budget.
So what gives?
The state is seeking a $2 billion line of credit to make sure it has enough money to maintain key programs later this year.
Well, the state is also constitutionally forbidden from ending the year with a deficit, which means that all the leftover cash that normally gets pushed forward to the next fiscal year to operate on until tax revenues flow in will be used up.
Most states would be pushing the panic button at this point and instituting large scale cuts in spending. Corzine is still pushing mandatory universal health care and pre-school education.
Democrat economics is the ultimate ponzi scheme. You have to keep spending in order to keep your political base from rebelling. As your policies alienate a greater and greater percentage of the electorate, you depend more and more on that base. Eventually, the facade collapses and everyone is left standing around wondering what happened.
