Bucco: Murphy’s Plan to Borrow Billions Premature, Excessive & Unconstitutional

Senator Anthony M. Bucco raised serious concerns about Governor Phil Murphy’s plan to borrow as much as $14 billion to fund government spending.

“Given his failure to consider fiscally responsible alternatives to balance the State budget, Governor Murphy’s borrowing scheme is premature, excessive, and almost certainly unconstitutional,” said Bucco (R-25). “When the State is already drowning in debt, New Jersey taxpayers cannot afford to give the Governor the blank check he’s demanding.”

Bucco noted that Senate Republicans have proposed substantial cost-saving solutions including the temporary furlough of non-essential government workers, pay freezes for workers not serving in front-line positions, the reallocation of pension payments to trigger larger federal reimbursements, and the reduction of excessive school aid increases.

Instead of working in a bipartisan fashion to achieve those savings, the Governor has advocated for the Legislature to grant him the authority to borrow billions to pay for operating expenses, which would violate of the New Jersey Constitution.

The General Assembly today approved, along party lines, legislation (A-4175) proposed by the Governor that would give the Murphy Administration the authority to borrow up to $14 billion.

“It was clear months ago that New Jersey’s finances were going to take a major hit as our economy shut down and tax revenues faltered,” added Bucco. “That’s why we repeatedly urged Governor Murphy to work with us to implement a number of fiscally responsible solutions to help lessen the impact, but he didn’t listen. Now he wants a blank check to borrow billions at taxpayer expense, suggesting it’s the only option. That’s simply not true. He just doesn’t want to make the tough choices that should be made.”