While the agency did not take the more drastic step of downgrading the state's bonds, which still have a high rating of Aa2, Moody's financial analysts said that the falling tax revenues and sputtering national economy had forced them to adjust their outlook for New Jersey's economy from "stable" to "negative".
But New Jersey faces a projected shortfall of more than $5 billion for the fiscal year that begins on July 1, and with the stock market showing few signs of a sustained rally, financial analysts said the state must take more drastic steps to address longer-term deficits.
Even if Newburgh fails to force the state to take more drastic action to clean up the contamination and change the way watershed jurisdictions work, its lawsuit could open the doors to a flood of litigation against the Defense Department, one of the nation's top polluters.
Other states have taken more drastic measures to circumvent the controls.
And Governor-elect Jerry Brown suggested Tuesday at a budget forum that schools could expect more drastic cuts when he presents a new state budget next month.
Still, there are potentially profound problems in the state economy that could force more drastic measures.
But recently, he said, the effort has become more of an economic necessity, partly because of drastic state funding cuts for higher education — a pattern seen across the country.
But more drastic demands, such as the ending of emergency law, which allows the state to arrest anyone who steps out of line, have been firmly rejected.The shootings in Deraa suggest that the government has opted for repression.
Governor Easley has already frozen hiring and most state construction projects, and budget officials say he now contemplating more drastic measures.
But Justice Department lawyers will have to persuade the 18 state attorneys general, some of whom have been pressing for more drastic remedies against Microsoft, to sign on.
