New Jersey Senate Bill S194

New Jersey 2022-2023 Regular Session

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

Caption

Requires ballot question on approval of State bond issue to disclose total amount of debt of State or other entity, debt service on which is funded through annual State appropriation.

Impact

The bill amends R.S.19:3-6 of the New Jersey statutes to ensure that any public question regarding the creation of state debt is presented in simple, understandable language. Voters would have the necessary context regarding the state’s financial obligations, as the interpretive statement would need to reflect current outstanding debts as of June 30 of the prior year. This change could enhance voter awareness and accountability regarding state financial practices, potentially influencing how bond measures are received during elections.

Summary

Senate Bill 194, known as the Debt Disclosure Enhancement Act, seeks to impose new requirements on the ballot questions concerning state bond issues in New Jersey. Specifically, it mandates that any such ballot question must include a clear statement detailing the total amount of outstanding debt and liabilities of the state, any state agencies, or instrumentalities that are funded through annual state appropriations. This legislative move aims to provide voters with essential information to understand the financial implications of their approval before voting on such matters.

Contention

While the intention behind SB194 is to promote transparency, there may be concerns regarding its implementation. Critics might argue that such requirements could overcomplicate the ballot, making it harder for voters to comprehend the key issues they are voting on. Additionally, the requirement for current debt disclosures could lead to debates about how timely and accurate this information can be presented, particularly in ensuring that the figures are understandable for the average voter. Despite these potential challenges, supporters argue that informed voters are crucial for responsible government borrowing practices.