Report Authorizing Crucial Borrowing to Address Steep Drop in Revenue Sent to Legislative Commission for Final Approval
September 22, 2020
(TRENTON) — Pursuant to the New Jersey COVID-19 Emergency Bond Act, the Department of the Treasury announced that issuing officials met today and released a report authorizing the state to issue up to $4.5 billion in General Obligation (GO) bonds to help navigate a steep decline in state revenue brought on by the COVID-19 pandemic.
During a public meeting via teleconference, the issuing officials — the State Treasurer and the Acting Director of the Office of Management and Budget — approved the general structure and form of the bonds to be issued in an amount not to exceed $4.5 billion. The bonds will be issued as general obligation bonds and the faith and credit of the state will be pledged for the payment of the required debt service. The bonds may be sold either to the Federal Reserve Municipal Liquidity Facility or into the public markets and may be sold as either tax-exempt bonds or as taxable bonds.
The issuing officials also authorized a list of proposed appropriations to be funded by the bonds, which is included as part of the report to the Legislature's Select Commission on Emergency COVID-19 Borrowing created under the bond act.
The report will now be transmitted to the Select Commission for consideration and approval. The commission is comprised of Senate President Steve Sweeney, Assembly Speaker Craig Coughlin, Senate Budget and Appropriations Committee Chair Paul Sarlo, and Assembly Budget Committee Chair Eliana Pintor Marin.