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The entire state of New Jersey has to rethink its budget because one guy moved

Apr 5, 2016, 22:37 IST

David TepperBloomberg TV

If you move away from your current home state, maybe some friends with throw you a party, maybe you'll get a happy hour discount at your local bar.

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If you're really a big deal, you might get to throw out the first pitch at your local minor league baseball team's next game.

Other than that, everything will be pretty much the same after you're gone.

That is, of course, unless you're billionaire David Tepper.

If you are, when you move away you have the potential to send your whole state ( in this case New Jersey) into red alert mode.

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In the fall of 2015 Tepper, the founder of hedge fund Appaloosa Management, moved to Florida. This, according to Bloomberg, has leaders of his former state very concerned.

From Bloomberg:

"We may be facing an unusual degree of income-tax forecast risk," Frank Haines, budget and finance officer with the Office of Legislative Services told a Senate committee Tuesday in Trenton.

New Jersey relies on personal income taxes for about 40 percent of its revenue, and less than 1 percent of taxpayers contribute about a third of those collections, according to the legislative services office. A one percent forecasting error in the income-tax estimate can mean a $140 million gap, Haines said.

Tepper, who founded his hedge fund in 1993 after working at Goldman Sachs, is worth between $10.6 and $11.6 billion, depending on who you ask (Forbes or Bloomberg).

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New Jersey probably has some precise numbers on that too.

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