...The 'A' rating for the NJEDA school facilities construction bonds is one notch below New Jersey's 'A+' IDR. The rating is based on the state's pledge to make annual payments equal to debt service, subject to annual legislative appropriation. New Jersey's IDR of 'A+' with a Stable Outlook reflects significantly improved operating performance and a commitment to addressing long-term liabilities through actuarial pension funding and debt reduction. These strengths are offset by continued reliance on nonrecurring solutions. Economic and revenue performance remain solid, despite slowing from the pace immediately after the pandemic. New Jersey has maintained a sizable ending balance, while addressing, though not eliminating, structural budget gaps....
