"The passage of this legislation is an important step in New Jersey's recovery from the economic ravages of the COVID-19 pandemic," Governor Murphy said. "While this is by no means a silver bullet, the ability to responsibly borrow is essential to meeting our fiscal needs in the coming year."
Under the law, the state has the authority to issue bonds totaling $2.7 billion for the remainder of the extended Fiscal Year 2020, which runs through September 30, 2020, and up to an additional $7.2 billion for the nine-month Fiscal Year 2021 that runs from October 1, 2020 through June 30, 2021, for a combined amount of up to $9.9 billion to be issued over the two periods.
The state is authorized to borrow either through the issuance of general obligation bonds that can be sold to investors or through the federal government's Municipal Liquidity Facility, which was established to help states and local governments across the country deal with the fallout from the global pandemic. The State is also authorized to refinance bonds issued pursuant to the bond act.
Debt service on this bond issuance will be repaid through the state's General Fund.
Governor Murphy stressed that the state plans to borrow only what is necessary to speed New Jersey's recovery from this unparalleled recession.
More on Jersey Desk
- Keys to Ease Concierge Realtors, Luxury Home Marketing Specialists
- Radiate Holdco, LLC Releases Second Quarter 2020 Financial Results and to Host Conference Call
- 25 Sexual Abuse Victims Sue Pittsburgh Catholic Diocese
- 7th Annual Celebration of HOPE Virtual Walk will be held on September 12
- From Pain to Beauty: The Journey of An Abstract Artist
"The current economic crisis is virtually unprecedented in both its severity and swiftness," said Governor Murphy. "Our unemployment numbers and drop in revenue have both far outpaced the worst months of the Great Recession so while we see this bill as an important step, our ultimate recovery will depend on a number of factors including additional federal aid and savings within state government."
The law also establishes the Select Commission on Emergency COVID-19 Borrowing, comprised of two members of the Senate selected by the Senate President and two members of the General Assembly selected by the Speaker of the General Assembly, which must approve any proposal to issue bonds prior to their issuance.
The bill was sponsored by Senate President Steve Sweeney and Sen. Paul Sarlo in the Senate and Assemblywoman Eliana Pintor Marin and Assemblyman John McKeon in the Assembly.
"This will give us the ability to provide the resources needed to respond to crisis economic conditions resulting from the coronavirus," said Senate President Steve Sweeney. "It also includes a process to ensure responsibility in managing public finances as we work through the fiscal problems that are not fully known. We want to be responsive to financial needs, but we also have to be fiscally responsible and recognize the long-term consequences of actions we take."
"We must keep New Jersey's economy moving and we have to continue to provide the government services that are so important during the pandemic," said Senator Paul Sarlo, chairman of the Senate Budget and Appropriations Committee. "While we understand the need for emergent financing to help with the economic recovery, we still have to be responsible with added debt. This is uncharted territory so we have to monitor fiscal conditions as we make decisions on borrowing."
More on Jersey Desk
- Gino Odjick Interview With I Only Touch Greatness Podcast
- Ideanomics Q2 Highlights - Revenues Increase - 50% Debt Reduction - $36 M Cash
- SFO Commodities Joins RCM Ag Services To Expand Offerings for Local and Commercial Agriculture Operations
- TaxCon's keynote speakers welcome attendees to event
- If you've lost a job and are struggling during the pandemic, choosing the right credit card could relieve stress
"The COVID-19 pandemic has had and continues to have a devastating impact on the State's economy. Residents, businesses, and government units have seen significant adverse effects," said Assemblywoman Pintor Marin. "The 'New Jersey COVID-19 Emergency Bond Act' authorizes the state to issue state general obligation bonds to help address the fiscal crisis caused by this pandemic. The impact of COVID-19 on our economy, budget and finances is unpredictable and changing rapidly. We must take action to ensure our fiscal viability by empowering the state to apply for and receive federal stimulus loans for the benefit of the state's ability to respond to the negative impacts of the coronavirus. We do not make this decision lightly. The historic nature of the current pandemic has led to this unprecedented last resort due to the current fiscal crisis."
"The current public health crisis has thrust us into a new reality that is nothing short of profound and unprecedented," said Assemblyman McKeon. "Especially when it comes to the toll it is taking on our state revenues and budget. The COVID-19 Emergency Bond Act, approved in the Legislature today, puts us a crucial step closer to crafting a fair and responsible path forward for all New Jersey residents come September. It's been said before and I'll say it again: we are in no position to cut or tax our way out the budget deficit we face, we must have the ability to borrow. This Act will enable the State to leverage funds quickly, so we can help everyday New Jerseyans during this once-in-a-lifetime pandemic."
Latest on Jersey Desk
- CMS issues the First Ever Guidance on Remote Patient Monitoring for proposed 2021 Physician Fee Schedule
- Smokescreen eyes a larger share of the global cybersecurity pie; appoints Preekshit Gupta as Head of Sales – India, MEA, and, APAC
- Evolve IP® Named For Eighth Time to the Inc. 5000 List of Fastest-Growing Private Companies
- Arrow Organics Reveals 20:1 CBD to THC Product Line
- Suicide Crisis has Minister Telling His Personal Story with Suicidal Thoughts
- Toenail Fungus Laser Therapy in New Jersey
- DelMar Aerospace Corporation Launches New Service: Rapid Deployment Solutions
- Updated Quarantine Advisory Issued for Individuals Traveling to New Jersey, Bringing New Total to 33 States and Territories
- Annual MSP 501 Identifies Best-in-Class Global MSP Businesses & Leading Trends in Managed Services
- America's #1 Frozen Indian Food Brand Now Ships Direct-to-Consumer Amid COVID-19
- CS Energy Opens Regional Office in New York
- Pvilion Awarded $1.5 Million USAF Phase II SBIR Contract for Autonomously Deployable Structures
- U.S. Army Awards DiSTI $10M Delivery Order for JLTV Trainers
- Eisai Announces Topline Results from Study 211 Supporting 24 mg as the Appropriate Starting Dose for LENVIMA® (lenvatinib) in Patients with Differentiated Thyroid Cancer
- VORAGO Technologies announces family expansion and size reduction of radiation-hardened Arm® Cortex® MCUs into BGA packages for Defense and Aerospace
- CU Xpress Lease Expands into Northern California
- Grab 'em by the Microphone! Independent Feature Film To the New Girl Releases on VOD
- Crossover Publications announces 9/11/2020 release date for Make America Saved Again
- New Jersey: Governor Murphy and Superintendent Callahan Announce Administrative Order Authorizing Reopening of Computer Labs at Colleges and Universities
- Sustainable Student-Run Company's Diverse Work Environment Embodies American-Made Spirit