If New Jersey is indicative of states’ fiscal health across the nation, then state bailouts are imminent.

According to the Garden State Treasury Department, sales-tax collections for April, the first full month of the coronavirus shutdown, dropped by a record 29% in May from a year earlier, a decline that is about 60% greater than the worst month of the Great Recession.

“The Sales and Use Tax, the largest General Fund revenue source, reported collections of $544.1 million in May, down a remarkable 29.0 percent below last May” the report said. By comparison, the worst Sales Tax month during the Great Recession saw a decline of 18.4% in June 2009.



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