NJLM Statement on Signing of Local Borrowing Option

Trenton, NJ (September 1, 2020) Earlier today, Governor Murphy signed into law A3971/S2475, reflecting both the initial intent of the legislation and his recommended changes made through a previous conditional veto. This new law will allow municipalities and counties to issue bonds for the loss of revenue and/or unanticipated expenses directly attributable to the COVID-19 pandemic with appropriate safeguards and Local Finance Board oversight.

The New Jersey State League of Municipalities expresses its appreciation to the Governor, Senators Singleton, Gopal, and Scutari, Assemblyman Benson, Assemblywoman DeCroce, and Speaker Coughlin for partnering with the League and other interested parties in forging this compromise. It will provide local governments with much-needed financial flexibility in response to the pandemic.

League Executive Director Mike Cerra made the following comments:

“Local governments have significant fixed statutory expenses and provide essential services. The cost of providing many essential services is likely to increase as a result of the COVID-19 pandemic. Meanwhile, local governments are experiencing revenue starvation as collections are likely to decrease during the pandemic and for a period of time afterwards.”

“And as we know, in the wake of the 2008 Recession and Hurricane Sandy, most local governments have already significantly cut costs and reduced services. This new law allows for local governments to plan accordingly, maintain essential services, and maintain a control on property taxes.”

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