Because of a new accounting rule, New Jersey now has to report its pension debt on its balance sheet. As a result, the state’s reported pension debt grew from $16 billion in 2014 to $82.4 billion in 2015. However, the state is still hiding $13 billion of pension debt from taxpayers.
Giving New Jersey A Powerful New Alternative to Wall Street
All across America, Wall Street financing of city, county and state debt has provided too many examples of excessive funding exploitation. The world of investment finance holds many trillions of taxpayer dollars that citizens gave to their local governments for management of common interests and public concerns. But our governments have handed that money over to some of the world’s largest banks, which have used it to make big profits off speculation and profiteering from public projects. It’s gotten so that each New Jersey citizen now accounts for $59,400 in public debt, the highest in the nation — and that number just gets bigger with each passing year as interest charges mount. Going into more debt each year can only lead to higher taxes, fewer public resources, compromised services and assets, stifled business, and a dimmer future.
But there’s good news!
We Don’t Need Wall Street
Why should we deposit our city and state tax dollars in Wall Street banks when we can put them into our own? It could save us literally hundreds of millions of dollars each year. By creating a state-owned public bank that keeps our money in New Jersey we can invest in the things we need and want, and create new non-tax revenues for our public treasuries in the process! The magic of a public bank: people get the money power instead of Wall Street! It’s time to reclaim control of our money and reverse the endless and doomed cycle of more debt – more taxes. Let’s get this logical thing done. After all, it’s our money!
Standing Together In Unified Citizen Action
Not many things can unite public will, but money is one that does. Each of us has concerns for our family and communities and many of these concerns require money to improve, secure and realize our objectives. A public bank’s mission is to serve these concerns and interests to create healthy, secure communities through affordable housing, low‐cost student loans, small business lending ‐‐ even cutting the cost of infrastructure improvements by 50% ‐‐ and much more.
NJ could literally save Billions in coming years with a Public Bank
When the State deposits its revenues in these big banks, the banks put it to profitable use – for themselves. But If we would deposit our tax revenues in our own bank, we can do the same thing. Keep our money at home, and invest in ourselves! And no, we’re not giving NJ politicians a bank – it will be an independent, transparent agency.
Here are just some of the ways Wall Street Costs New Jersey:
$43,800,000,000 (billion) in State debt
$725,000,000 in pension fund fees/bonuses last year alone
$2,800,000,000 (billion) in bonds for Transportation Fund
$500 million private bank loan to tide over debt
$16,000,000,000 in planned borrowing for transportation
Over a 20-year term, a 2% public bank loan could save NJ taxpayers
$840,000,000 to $2,100,000,000
And the interest we pay to our bank is profit that comes back to us!
New non-tax revenues — Added capital to increase bank lending — End cycle of more debt/taxes
Here’s the Difference We Seek
Public Banking is the Smarter System