On Tuesday, July 14 the Senate Budget & Appropriations Committee favorably released S-2697/A-4175 (Sweeney/Sarlo/Pintor Marin/McKeon), otherwise known as the “New Jersey COVID-19 Emergency Bond Act,” which authorizes issuance of State bonds totaling up to $9.9 billion. Since 2008, New Jersey’s Constitution has required voter approval to borrow money for the state budget, but also includes language that relaxes some restrictions on the issuance of debt during times of emergency. Governor Murphy, who initially proposed the borrowing plan in May, has indicated he will sign the bill into law once passed by the Legislature later this week.

This measure will allow state government to borrow upwards of $9.9 billion to help offset revenue lost by the COVID-19 pandemic. The borrowed money will primarily be used for operating expenses unrelated to the pandemic but will require legislative approval, which will be considered by the newly created “Select Commission on Emergency COVID-19 Borrowing” before the Governor can finalize any borrowing.

This measure now moves before both the full Senate and full General Assembly for a vote on Thursday, July 16, Should the bill pass it will be sent to Governor Murphy to sign into law.

Click here to read the CCSNJ testimony opposing this bill. 

Please reach out to Hilary Chebra, Manager, Government Affairs, at hchebra@chambersnj.com if you have any questions