New Jersey Assembly Bill A3790

New Jersey 2022-2023 Regular Session

• Introduced: 5/2/22
• Refer: 5/2/22

Caption

Requires annual State debt affordability analysis be included in State Debt Report.

Impact

If enacted, A3790 will amend existing laws related to the preparation of the State Debt Report, thereby requiring a detailed assessment of the state's ability to afford increases in various forms of debt. This includes estimations of available revenues for debt service over the next ten fiscal years, additional debt issuance requirements, and an evaluation of pertinent debt ratios which assess the overall financial health of the state. Such measures will contribute to more prudent financial planning and resource allocation.

Summary

A3790 is a bill introduced in the New Jersey legislature that mandates the inclusion of an annual State debt affordability analysis within the State Debt Report. The intention is to ensure that both the executive and legislative branches have a comprehensive framework to evaluate the state's capacity to manage its debt effectively. By incorporating this analysis, the bill aims to provide transparency and support informed decision-making regarding future state debt and capital project funding.

Contention

Notable points of contention regarding A3790 may arise from concerns about the implications of increased state debt on future fiscal policies. Critics could argue that greater state debt could lead to higher future debt service costs, potentially straining the budget available for other essential services and programs. Proponents of the bill assert that a structured analysis can assist in prioritizing capital projects that serve the public interest without compromising financial integrity.

Future considerations

The passage of A3790 would establish a clearer process for assessing and managing state debt, with an emphasis on debt sustainability. It will likely influence the prioritization of funding for capital projects, giving policymakers valuable insights into the potential economic impacts of their decisions. In essence, it sets a foundation for a data-driven dialogue on fiscal policy in New Jersey.