On August 12, the NJ Supreme Court ruled that the “New Jersey COVID-19 Emergency Bond Act,” which authorized issuance of State bonds totaling up to $9.9 billion is constitutional.
The unanimous decision stated that New Jersey government cannot issue bonds or borrow funds beyond the actual fiscal emergency caused by the pandemic. To ensure this, the Governor or the Treasurer must certify publicly the State’s projected revenue and consequent shortfall as a result of the COVID-19 pandemic before each tranche of borrowing.
The CCSNJ opposed this measure, concerned that the longstanding impact of any borrowing will add to the state’s already enormous debt, which can only lead to higher taxes on already overburdened residents and businesses.
Please reach out to Hilary Chebra, Manager, Government Affairs, at hchebra@chambersnj.com if you have any questions.
