Steven Malanga has a pretty scary piece in the summer issue of City Journal. He starts with a nice story about New Jersey working to provide it’s citizens with entertainment, but quickly leads to his horror:
Today, 35 years after its first bonds, the NJSEA is $830 million in hock. Worse, it can’t repay that debt because business has cratered at the racetrack, still the Meadowlands’ principal revenue source. As for Giants Stadium, it was demolished this year, and its replacement won’t be contributing much to the debt repayments. The state, facing its own cavernous budget deficits, has had to assume the authority’s interest payments—about $100 million this year on bonds that now stretch out to nearly 2030. “The sports authority is paying the consequences for politicians using it for their pet projects,” observes Steve Lonegan, former mayor of Bogota, New Jersey.
And this is not an isolated story. See the whole piece here (and it is well worth the read).