NorthJersey.com: New Study Ranks N.J. Among the States That Help Cities Avoid Bankruptcy
A new study of the role states can play to help cities and towns in financial distress released today by The Pew Charitable Trusts puts New Jersey in the group of states that more aggressively police local government financial issues. Those contrast with states like Alabama and California, which saw the city of Stockton go bankrupt in 2012, that basically make municipalities go it alone when it comes to fiscal problems.
Though Detroit and Stockton drew national headlines for going under, local government bankruptcies are very infrequent considering how many cities, boroughs and towns there are across the country, said Kil Huh, Pew’s director of state and local fiscal health. “It’s still rare for local governments to seek bankruptcy protection from the courts,” Huh said.
In New Jersey, even though cities like Camden, Newark and Paterson have faced extreme hardships for decades, no municipality has ever gone bankrupt. The Pew study cited state government’s willingness to intervene in New Jersey, something that’s ongoing now as some coastal communities are still recovering from 2012′s Superstorm Sandy.
Read the full article at NorthJersey.com.
- States' Fiscal Health