state debt

Annual debt report finds New Jersey's long-term debts and obligations, including pensions and health benefits, reached $248.6 billion as of mid-2021.

Applications for money from four bond programs will be due early next year, with awards expected by year's end.

The state has set aside $2.5 billion to defease some of the state's long-term debt, though the process will take a few months.

An annual report from the think tank Truth in Accounting finds New Jersey's long-term debt, pension and health-benefits bills amount to $58,300 per taxpayer.

New Jersey's bonded debt is approaching $50 billion, including the $3.7 billion the state borrowed in November when it thought COVID would wreck its revenues.

The state's emergency COVID borrowing cannot be repaid early, but Treasury Department says it makes more sense to repay other debt with higher interest rates.

After interest-only payments are made in 2021 and 2022, yearly payments are expected to be slightly more than $500 million for the 10 years that follow.

To make up for projected declines in revenue projections, the 2021 state operating budget is balanced in part through $4.5 billion in general obligation bonds.

Murphy administration says the borrowing is allowed to respond to an emergency caused by a disaster. Republicans sued saying it would need voter approval.

It's contentious, and might not be legal. But the idea of borrowing $9.9 billion gets more support from other deficit cures in an FDU Poll.