Restricts authorization of new debt by State Treasurer.
Impact
The implications of S3435 are significant for fiscal policy in New Jersey. By regulating how new debt can be issued, the bill aims to promote responsible debt management practices, ensuring that the State does not incur additional liabilities unnecessarily. The requirement for the State Treasurer to notify the Joint Budget Oversight Committee when new debt is to be issued is intended to provide greater transparency and accountability in state borrowing practices, potentially leading to a more stable fiscal environment.
Summary
Senate Bill S3435 seeks to enhance the financial oversight and management of the State's debt by restricting the authorization of new state debt by the State Treasurer unless specific conditions are met. The bill mandates that new appropriations-backed bonds can only be issued if there are no unexpended and uncommitted balances in the 'New Jersey Debt Defeasance and Prevention Fund' or if the debt service on the new bonds is less than that of existing debts that can be retired or defeased. This effectively aims to prevent unnecessary accumulation of state debt under unfavorable payment terms.
Contention
Notable points of contention may arise regarding the flexibility of state budget management. Proponents argue that these restrictions will lead to better financial health for the state, preventing the accumulation of high-interest debt when funds are available to pay down existing obligations. However, critics might contend that such restrictions could limit the state’s ability to respond to immediate financial needs, particularly in times of economic downturns or unexpected fiscal crises. The balance between prudent financial management and responsive governance will be a key discussion point among stakeholders.
Credits $2.35 billion to "New Jersey Debt Defeasance and Prevention Fund"; appropriates $4.32 billion to Department of Treasury to provide funds to municipalities and counties for debt retirement and avoidance.
Credits $2.35 billion to "New Jersey Debt Defeasance and Prevention Fund"; appropriates $4.32 billion to Department of Treasury to provide funds to municipalities and counties for debt retirement and avoidance.
Credits $5.2 billion to "New Jersey Debt Defeasance and Prevention Fund"; appropriates $2.9 billion to NJ Schools Development Authority, NJ DOT, and NJT; and establishes process for authorizing future appropriations for debt defeasance and capital projects.
Appropriates $247,128,000 from "New Jersey Debt Defeasance and Prevention Fund"; establishes process for authorizing future appropriations for debt defeasance and capital projects.
Appropriates $247,128,000 from "New Jersey Debt Defeasance and Prevention Fund"; establishes process for authorizing future appropriations for debt defeasance and capital projects.
Appropriates $393,480,000 from "New Jersey Debt Defeasance and Prevention Fund"; establishes process for authorizing future appropriations for debt defeasance and capital projects.
Credits $5.2 billion to "New Jersey Debt Defeasance and Prevention Fund"; appropriates $2.9 billion to NJ Schools Development Authority, NJ DOT, and NJT; and establishes process for authorizing future appropriations for debt defeasance and capital projects.
Appropriates $393,480,000 from "New Jersey Debt Defeasance and Prevention Fund"; establishes process for authorizing future appropriations for debt defeasance and capital projects.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.