Requires public referendum prior to issuance of general obligation bonds by local units.
Impact
This bill modifies existing statutes concerning local bonding practices, particularly the 'Local Bond Law' and the 'Local Budget Law'. Currently, local governments can issue general obligation bonds without voter approval, which obligates taxpayers to repay these debts. The new provisions of A1083 are designed to allow residents to vote on bond issuance, enabling them to have greater control over local fiscal responsibilities and influencing how local units manage their debts. If enacted, this will also affect how local governing bodies plan for future financial obligations.
Summary
Assembly Bill A1083 proposes a significant change in the governance of local fiscal decisions within New Jersey by requiring a public referendum prior to the issuance of general obligation bonds by local units. This requirement mandates that any ordinance to issue such bonds must be submitted for voter approval at a general election occurring at least 70 days after the final adoption by local governing bodies. By empowering voters to have a direct say in these financial matters, the bill aims to enhance local accountability and transparency in government borrowing practices.
Contention
There may be potential contention surrounding the implementation of this bill, particularly from local government officials who may view it as an infringement upon their authority and ability to make swift financial decisions necessary for community projects and improvements. Advocates argue that public ballots on significant debt decisions are essential for accountability, while opponents may contend that such requirements could hinder urgent financing needs and lead to delays in important local initiatives. The distinction made between general obligation bonds requiring a referendum and 'special emergency notes' or other exceptions can also be a point of debate.
Proposes constitutional amendment to provide for enactment of laws concerning property tax reform, campaign finance, lobbying, government ethics, and elections procedure by Statewide initiative and referendum.