Craziness? Incompetence? Something else?
Probably a little of “all of the above,” Save Jerseyans. This is New Jersey we’re talking about.
State Senator Declan O’Scanlon (R-13), who serves on the Senate Budget & Appropriations Committee, is one of many legislators questioning why the Murphy Administration is reportedly ready to issue $750 million in high-interest debt (for which Trenton will make interest-only payments until 2032) when, at this moment, the state still has $3 billion sitting unused in a debt defeasance and prevention fund.
“The debt defeasance and prevention fund was created to offset reckless and expensive borrowing of the exact type that the Murphy administration will soon issue for the Transportation Trust Fund,” said O’Scanlon on Monday. “Instead of using funds already on hand to pay for our upcoming transportation needs, the governor wants to commit to 30 years of debt while kicking the can on principal payments ten years down the road. This proposed borrowing is utterly irresponsible and repeats the financial malpractice that has buried New Jersey in debt.”
The new debt is allegedly for the Transportation Trust Fund (TTF). When the repayments and interests are totaled ($1.527 billion), taxpayers will be on the hook for roughly double the original borrowed amount.
The Murphy Administration’s bizarre borrowing behaviors have been debated (and litigated) since the pandemic began. Borrowing for the TTF could also pour fuel on the fire of particularly hot topic at the moment: gas prices.
“Since TTF debt is repaid through gas taxes collected at the pump, Governor Murphy is setting the stage for another big gas tax increase at some point in the near future,” continued O’Scanlon. “To commit to such an irresponsible borrowing scheme when the State has money sitting in the bank to prevent new debt shows just how little the governor cares about helping families that are struggling with high taxes, inflation, and gas prices.”
