The Country’s Most Similar States

 

 

Despite being on opposite coasts of the continental United States, California and New Jersey have been widely noted to be the Union’s most similar states. Keeping residences in both, I hope to explain to you in this webpage how they are not only similar geographically and politically, but also socially, economically, and culturally.

 

1. To start, California and New Jersey are both known as political hotspots in the United States.  Although they are historically democratic, they are still have prominent importance in the political spectrum.

 

    

 

2. They both have a 76% Christian population.

 

 

3. Three states and an ocean border both New Jersey and California.

 

 

 

4. They are the top two Olive producers in the United States.

 

 

5. Coincidentally, they both have equivalent land masses.  This can be proven by comparing the images on the top of this page.

6. Both states have the tallest recorded Redwood trees (Sequoia sempervirens) in the country.

 

 

7. The combined length of road in each state is the same.

 

              

 

8. They made number one and number two in US News & World Report’s “Most Malls” category.

 

           

 

9. They have the two largest pornography industries in the country.

 

       

 

10. The offices of the Senators’ from New Jersey and California are adjacent to each other in Washington, D.C.

 

          

 

In Recent News:

The States of California and New Jersey were both in the news in recent weeks with state general fund budgets approved by the respective Legislatures. Interestingly, the budgets have similarities despite the significant rating differentials between NJ and CA. New Jerseyâs general obligation bonds are rated Aa3/AA-/AA-, while Californiaâs general obligation bonds are rated A3/BBB/BBB by Moodyâs, S&P and Fitch, respectively. The key similarity in our view is lack of structural balance in the 2004-2005 budgets. Both states have had several years of budget problems, solved primarily through one-time revenue enhancements including pension and deficit bonds. In the aftermath of NJâs budget, the stateâs ratings were cut from Aa2/AA/AA to Aa3/AA-/AA- by Moodyâs, S&P and Fitch, respectively. Each of the agencies cited the lack of structural balance and the usage of deficit bonding as credit concerns.

Importantly, New Jersey, while experiencing operating deficits over the last several years, did not have as large a drop in personal income taxes as California nor did it have the ãliquidityä crisis associated with the $14 billion in short term notes that the State of California repaid in June of 2004. In the aftermath of the approval of the State of California budget, Fitch affirmed the general obligation rating and removed it from Rating Watch negative.

Both these states have budgetary stability in place for the 2004-2005 budget year. It is generally built on deficit financings and one time budgetary solutions. It is fair to note that in addition to the deficit financings, the State of New Jersey also raised taxes in order to fund spending growth. Regardless, the near term credit outlook for each of these states is stable, in our view. However, each is likely to face significant challenges in the 2005 and 2006 budget years especially if slow to moderate economic growth occurs limiting revenue growth.

 

 

 

 

 

 

 

 

 

 

So next time some asshole named Brian tells you that they aren’t similar, tell him to FUCK OFF!