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Bill > ACR90
NJ ACR90
NJ ACR90Proposes constitutional amendment requiring voter approval of State bond refundings that increase principal amount of total State bonded indebtedness.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This Assembly Concurrent Resolution amends the State Constitution to require that a State refunding bond issue that proposes to increase the principal amount of outstanding debt beyond the costs of the refunding must be approved by the voters. Under the State Constitution, the issuance of State bonds must be approved by the voters. Under amendments made to the Constitution in 1983, no voter approval is required to issue new debt for refinancing of previously issued bonds if the new debt will provide a debt service savings to the State after the new debt is used to pay off the old debt. The act implementing the 1983 amendment permits debt service savings to be determined on the basis of the present value savings of the refunding (a present value savings means that in terms of today's dollars the value of the stream of principal and interest payments due and payable over the term of the refunding bonds must be less than today's value of the stream of principal and interest payments due and payable over the term of the outstanding bonds). Currently neither the Constitution nor the implementing act restrict the principal amount of the refunding bonds that may be issued except to require generally that the principal amount not exceed an amount necessary to refinance the outstanding bonds. The extent of the present value savings to be achieved through a refunding and how that savings may impact on the State budget are not currently stated in the Constitution or in the refunding act but are left to the discretion of the issuing officials with the approval of the Joint Budget Oversight Committee. Under this amendment those issues would still be discretionary, but a refunding that proposed to increase the principal amount of debt outstanding beyond the costs of the refunding would require the approval of a majority of the voters at a general election, the same requirement as for an original State bond act.
AI Summary
This concurrent resolution proposes a constitutional amendment that would require voter approval for any State bond refunding that increases the total principal amount of the State's bonded debt beyond the amount needed to cover the refinancing costs. Currently, the State Constitution requires voter approval for issuing new debt, but an amendment made in 1983 allows for refinancing of existing debt without voter approval if it results in debt service savings, meaning the present value of future payments on the new debt is less than that of the old debt. This resolution aims to close a perceived loophole where the principal amount of refunding bonds could exceed the original debt plus refinancing costs, even if debt service savings are achieved, by mandating a public vote for such increases, similar to the process for approving original State bond issues.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/ACR90 |
| BillText | https://pub.njleg.gov/Bills/2026/ACR/90_I1.HTM |
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