Republican gubernatorial candidate Jack Ciattarelli may launch another suit seeking to stop New Jersey from using borrowed funds to plug budget holes, only this time, he’d seek to stop the state from funding a baby bonds program through bonding.
“We’re going to put $1,000 into an account for every baby born into a family whose gross income is less than $130,000. Is this the time for that type of program?” he said. “The Supreme Court has been played for fools. That is not COVID-related, that program, and what the governor’s doing is leveraging the supreme court decision to allow him to borrow billions to put through an agenda that is terribly timed and bad for New Jersey.”
The baby bond program would put $1,000 in an interest bearing account for children born to families making less than 500% of the federal poverty level, about $131,000, per year. That money could be withdrawn and used for education expenses, entrepreneurial endeavors and other wealth-generating activities once the child reaches their 18th birthday.
Ciattarelli was allowed to join a Republican State Committee lawsuit seeking to strike the borrowing law on constitutional grounds as a friend of the court. The state’s high court sided with the Murphy administration, refusing to rescind the law.
Now, Murphy wants to borrow $4 billion to make up for COVID-19-fueled budget shortfalls. It’s not clear exactly how that money will be divvied up, but if some borrowed money goes to expenses not related to the virus, Ciattarelli may reenter the legal fray.
“That is certainly something we will evaluate,” Ciattarelli said. “In our opinion, one could argue the funds are all fungible. If he’s using borrowing for expenditures that are not COVID-19-related, I believe he has violated what the Supreme Court said.”