Bill > S1695

Introduced Session

This bill prohibits the State Treasurer from authorizing new State debt through appropriations-backed bonds unless: (1) there is no available balance in the "New Jersey Debt Defeasance and Prevention Fund"; or (2) the present value of debt service per $1,000 of face value of appropriations-backed bonds being issued is less than the present value of debt service per $1,000 of face value of appropriations-backed bonds that could be retired or defeased though the "New Jersey Debt Defeasance and Prevention Fund." When the fund has an unexpended and uncommitted balance, the bill requires the State Treasurer to immediately notify the Joint Budget Oversight Committee, or its successor, whenever the State Treasurer is facilitating the issuance of new appropriations-backed bonds and would be required to certify that State bonds with higher amounts of debt service that could otherwise be retired or defeased do not remain outstanding, or that the issuance of new State debt is in compliance with applicable law. The bill is intended to address instances where the State Treasurer has been authorizing new State debt with payment schedules beginning a decade into the future, declining to pay back debt with high rates of interest despite availability of funds, and choosing to defease debt with lower interest rates. By regulating the issuance of new State debt in accordance with the provisions of this bill, the State can ensure responsible management of its debt obligations.

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Committee Categories

Declan O'Scanlon (R)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)

Official Document