New Jersey Assembly Bill ACR49

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Proposes constitutional amendment requiring voter approval of State bond refundings that increase principal amount of total State bonded indebtedness.

Impact

If enacted, ACR49 would significantly alter how the state can manage its bonded indebtedness. The legislation would ensure that any attempt to increase the total outstanding debt through refunding exercises will be subject to a public vote. This shift seeks to enhance fiscal accountability and provide taxpayers with a say in decisions that could impact the state’s financial obligations. By doing so, ACR49 is expected to provide greater transparency in public finance and reinforce the principle that voters should have a say in potentially raising state debt levels.

Summary

Assembly Concurrent Resolution No. 49 (ACR49) proposes an amendment to the New Jersey State Constitution that mandates voter approval for any issuance of state refunding bonds that increases the principal amount of the total bonded indebtedness. Currently, the state's constitution permits the refinancing of bonds without voter consent if it is expected to yield a debt service savings. ACR49 seeks to limit this exemption by requiring public approval whenever the amount of refunded bonds exceeds the costs necessary to refinance existing bonds.

Contention

Opponents of ACR49 may raise arguments regarding the efficiency and speed of debt management processes. They could contend that requiring voter approval for each increase in bond debt might hinder the state's ability to act swiftly in refinancing actions that otherwise could produce significant savings. Proponents, however, argue that the measure promotes taxpayer engagement and accountability, ensuring that the government remains cautious about incurring additional debt independent of voter consent. This point of contention highlights the balancing act between efficient governance and democratic oversight in financial matters.