Camden, New Jersey, once known as one of America's most dangerous cities, has marked a shift in its economic narrative.
Long burdened by high crime rates and economic challenges, Camden has now seen a substantial improvement in its fiscal health, buoyed by increased state aid, economic incentives, and rigorous financial management. S&P Global last week upgraded the city's investment grade bond rating from "A-" to "A," a move that reflects Camden's journey from a troubled past to a promising financial future.
The city's surging bond rating, achieving its highest level in nearly 50 years, signals renewed investor confidence and broader transformation, mirroring Camden's evolving economic landscape and commitment to sustainable growth.
Camden's fiscal resurgence is rooted in a series of strategic financial decisions and economic investments, according to the S&P Global report. The agency, which provides financial intelligence solutions to businesses and governments, cited Camden's transformation from a challenging past to a stable and promising financial future as being marked by an improvement in reserves, partly attributed to the effective utilization of federal stimulus funds, including $61.6 million from the American Rescue Plan Act.
Newsweek has reached out to S&P Global by email for comment.
The city's proactive financial management, highlighted by a surplus of $65.6 million in fiscal 2022, has been critical in increasing reserves to $82.8 million, S&P Global said. The figure represents nearly 43 percent of the city's operating expenses, a contrast to the reserves at the end of fiscal year 2020 and 2021.
Camden's economic landscape has also seen a boost, with over $2.5 billion in investments since 2013, the report said. Major projects, like the $250 million renovation of the Walter Rand Transportation Center and expansions by Cooper University Hospital and Virtua Health, signal a rejuvenation of the city's economic fabric.
However, the journey ahead for Camden, once named the most dangerous city in America in 2008 by a CQ Press study, includes addressing future fiscal challenges. Camden anticipates a potential budget gap of up to $25 million in fiscal 2025, driven by rising costs and state aid appropriations. Still, S&P Global said its current strong financial profile is expected to continue, buoyed by robust state support and recent economic momentum.
Looking forward, the stability of the S&P rating hinges on consistent budgetary performance and sustained state aid, the report said. A decline in either could negatively impact the rating. Conversely, ongoing economic growth, improved wealth and income metrics, and the maintenance of strong financial performance and reserves could lead to a more favorable rating action in the future.
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Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
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