Restricts authorization of new debt by State Treasurer.
Impact
The impact of A5108 on state laws is substantial. By amending existing regulations surrounding the New Jersey Debt Defeasance and Prevention Fund, this act centralizes control over state debt issuance at the executive level, requiring the State Treasurer to provide more oversight and justification for new debt. The intended outcome is to minimize unnecessary debt under high-interest conditions, ultimately fostering a healthier fiscal environment within the state's budgetary considerations.
Summary
Assembly Bill A5108 introduces significant restrictions on the State Treasurer's ability to authorize new state debt through appropriations-backed bonds. This is primarily achieved by prohibiting such authorizations unless there is no available balance in the New Jersey Debt Defeasance and Prevention Fund or if the issuance under certain conditions is more favorable than existing bonds. The bill aims to promote fiscal responsibility by ensuring that state debt remains manageable and that funds are used efficiently to support state financial health.
Contention
Points of contention surrounding A5108 may arise from differing perspectives on fiscal policy management. Proponents of the bill argue it is necessary for prudent financial governance, shielding future budgets from excessive debt obligations. Critics, however, may view these restrictions as overly constrictive, potentially limiting the state's ability to leverage funds for necessary projects during times of economic downturn or unexpected expenses. This debate may influence future discussions surrounding state budgeting practices and financial strategy.
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.
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.
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.
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.