Gov. Phil Murphy wants to borrow $4 billion. Lawmakers point to revenue forecasts saying more money may be coming than he expects
Just how much New Jersey will borrow to prop up the next state budget remains uncertain, but some important details about how new debt would be issued — and paid back by taxpayers — are beginning to emerge.
According to budget documents and recent testimony during hearings before lawmakers, Gov. Phil Murphy’s administration is planning to use a 10-year repayment schedule for a total of $4 billion in new debt to help fund a nine-month budget he put forward last month.
Annual interest on the bonds could be around 2%, and repayment would begin almost immediately at a cost of about $400 million annually in a full budget year, Department of Treasury officials told lawmakers last week.
NJSPOTLIGHT.COM
JOHN REITMEYER, REPORTER | SEPTEMBER 14, 2020