O’Scanlon: Democrats’ Partisan Agreement to Borrow Nearly $10 Billion Still Unconstitutional

Debt & Interest Payments Could Cost NJ Taxpayers More than $40 Billion Over Next 35 Years

Senator Declan O’Scanlon (R-13), a member of the Senate Budget & Appropriations Committee, issued the following statement following the announcement of an agreement today by Governor Murphy and Democrat legislative leaders to borrow nearly $10 billion without voter approval:

“We learned by press release that Democrat leaders have come to a private agreement to fast-track the largest borrowing scheme in New Jersey history and likely the largest that any state has ever issued. Within the next week, they plan to give Governor Murphy the ability to borrow nearly $10 billion to cover State spending, without demanding any real attempts to achieve savings.

“This plan represents fiscal irresponsibility on a scale that is unprecedented even by Trenton standards.

“To fund spending over the next fiscal year, taxpayers will be on the hook for $10 billion of debt and potentially more than $30 billion of interest payments over the 35-year repayment period that the proposal allows. At the same time, Wall Street bankers will collect hundreds of million of dollars in fees at New Jersey’s expense.

“To saddle the next generation of New Jerseyans with potentially $40 billion of debt repayments for spending that will occur next year is beyond insane. That’s exactly why schemes like this must be approved by the public.

“Unsurprisingly, the Democrats’ partisan agreement fails to address the simple fact that this record-setting, multi-billion borrowing scheme to fund State operating expenses remains unconstitutional without voter approval.”