Proposes constitutional amendment requiring voter approval of State bond refundings that increase principal amount of total State bonded indebtedness.
If enacted, ACR73 would amend Article VIII, Section II, paragraph 3 of the New Jersey Constitution to set clearer restrictions on the issuance of refunding bonds. Specifically, it will limit the issuance of such bonds to situations where the principal amount does not exceed the outstanding debt being refinanced plus necessary costs. This could potentially increase accountability and transparency in the state's financial practices, ensuring that taxpayers are directly involved in decisions regarding increments in government indebtedness.
Assembly Concurrent Resolution 73 (ACR73) proposes a constitutional amendment to require voter approval for State bond refundings that would increase the overall principal amount of State debt. The amendment aims to tighten the existing provisions established in 1983, which currently allow the state to issue refunding bonds without voter consent as long as it results in debt service savings. The proposed change would ensure that any increase in State debt through refunding mechanisms must undergo a democratic process, as it mandates approval by majority vote during a general election.
The amendment aims to address concerns about the state's financial management by preventing the risk of uncontrolled debt increases. However, there may be contention around whether this requirement could hinder the state's financial flexibility. Critics may argue that requiring voter approval for bond refundings, even when intended to secure cost savings, could delay or complicate the state's ability to manage its financial obligations efficiently. Proponents, on the other hand, are likely to highlight the advantages of public oversight in governmental financial decisions, advocating for greater transparency and responsibility.