Moody's maintained a stable outlook on New Jersey's financial health "supported by the likelihood the state will continue its current practices for managing reserves and long-term liabilities, and by the expectation that the state will maintain a comparatively large budgetary surplus even in the event of near-term economic dislocations." However, Moody's also cautioned against excessive optimism because the state "remains subject to long-term liability and fixed-cost burdens much more substantial than those of most other states." The state could be hit with a downgrade if annual contributions to the state's pension system fall "substantially below those that are actuarially indicated," the report said. "Reliance on a preponderance of non-recurring actions to address substantial budget deficits" would be another source for a downgrade as would "substantial growth in unfunded pension liabilities or other debt that elevates fixed costs."