Statements on Supreme Court decision on borrowing

“Today’s ruling is great news for New Jersey, as it will set the stage for a stronger and faster pandemic recovery. While borrowing should always be viewed with skepticism, the COVID-19 pandemic necessitates this plan. New Jersey is facing unprecedented revenue shortfalls over the next three fiscal years. Without federal borrowing to support state and local governments, lawmakers would be forced to slash critical programs and services at the precise time they are needed the most. We’ve seen the damage caused by a cuts-only approach before. It not only devastated local economies and caused unnecessary hardship, it deepened the Great Recession and hampered New Jersey’s economic recovery. Catastrophic budget cuts during a global pandemic is a nonstarter.”

ASSEMBLYMAN JOHN MCKEON

“The Supreme Court’s holding on the Act’s constitutionality is consistent with the arguments advanced on the floor of the legislature by advocates. The Supreme Court focused on the language in the Constitution so crafted by the framers for the type of fiscal emergency created by the COVID-19 pandemic. The opinion is well reasoned and a victory for all New Jersey residents whom would otherwise had suffered dire consequences without this legislation.”

ASSEMBLY SPEAKER CRAIG COUGHLIN

“I am pleased the State Supreme Court unanimously validated the action taken by the Legislature to address the unprecedented needs created by the public health crisis brought on by the COVID-19 pandemic. An unparalleled course of action is necessary. The coronavirus pandemic represents the greatest public health and economic challenge we have faced since the Great Depression, nearly a century ago. Giving the compelling nature of the times we are in, the Legislature took the necessary steps to enable borrowing by the State. Our residents face record unemployment, loss of business and difficulty in paying rents and mortgages.  The middle class is struggling to make ends meet. The State Treasurer has estimated billions in loss of revenue. It’s an economic tsunami that requires an extraordinary action. While not ideal, we must borrow the necessary funds through bonding. The court’s decision provided reasonable measures to guide borrowing. We will work within those parameters and ensure proper Legislative oversight is included. With this, our economic position will be strengthened for both the present and future.”

ASSEMBLY MAJORITY LEADER LOUIS GREENWALD

“Almost no state in the nation has been hit harder by the COVID-19 pandemic than New Jersey. The threat it continues to pose to our economy, businesses, health care systems, and our most vulnerable residents is real and must be addressed with bold and decisive action.  I applaud the Court for their unanimous decision that the unprecedented challenges we face as a result of the ongoing public health and economic crisis make the borrowing permitted under the COVID-19 Emergency Bond Act constitutionally sound. The borrowing will allow the State to stave off massive property tax increases, and to provide funding for our schools, institutions of higher education, municipalities, first responders and more. Borrowing was our ‘last resort’ option and one I would not typically support under ordinary circumstances, but we are still fighting our way through an once-in-a-lifetime pandemic and an unparalleled decline in revenue. Let’s be clear, there was no other plan in place or presented by our fellow colleagues across aisle. We made an unprecedented choice during an unprecedented crisis, doing what is right for New Jersey residents.”

ASSEMBLY BUDGET COMMITTEE CHAIR ELIANA PINTOR MARIN

“The COVID-19 pandemic has had and continues to have a devastating impact on the State’s economy. Residents, businesses, and government units have all been impacted. Today’s unanimous ruling by the Supreme Court makes clear the justices acknowledge these unfortunate facts and I am grateful for that.  The ‘New Jersey COVID-19 Emergency Bond Act’ authorizes the State to issue State general obligation bonds and apply for federal stimulus loans to help address the fiscal crisis caused by this pandemic. The impact of COVID-19 on our economy, budget and finances is unpredictable and continues to change rapidly. The Bond Act provides an important solution that, along with significant cuts in spending that must be identified, will help stabilize the State budget. We did not make this decision to authorize this borrowing lightly. The historic nature of the current pandemic has led to this unprecedented last resort due to the current fiscal crisis.”

NEW JERSEY DEMOCRATIC STATE COMMITTEE SPOKESMAN PHIL SWIBINSKI

“This Republican lawsuit was never about helping New Jersey residents deal with the pandemic. Just like every other action Trenton Republicans have taken in the last several months, it was always about partisan politics, pure and simple.  While Trenton Republicans continue to spread conspiracy theories, file baseless court challenges and battle each other for Fox News hits, Governor Murphy and legislative Democrats are making the hard choices needed for middle class families to weather this storm. It’s never been more clear where the two parties stand — Governor Murphy and NJ Democrats stand with the people of New Jersey, and Trenton Republicans stand with President Trump and their radical, out of touch extremist base.”

SENATE REPUBLICAN BUDGET OFFICER STEVE OROHO 

“While I’m disappointed the Supreme Court didn’t shut down the administration’s irresponsible borrowing scheme completely, I’m glad some guardrails have been set that will limit the damage.  Based on the limitations imposed by the ruling, it’s unlikely the governor will be able to borrow the full $9.9 billion he initially sought. A reduction of a few billion dollars in bonding would save New Jersey taxpayers many billions more in repayments in future years. We know the $10 billion revenue shortfall that the administration predicted months ago hasn’t materialized.  It’s likely we’ll learn that revenues have far exceeded expectations when the administration provides an update on sales, income, and business tax collections. Based on today’s court ruling, each extra dollar of unanticipated revenue we collect will cut a dollar from the administration’s ability to borrow. “Everyone’s forgetting that the administration can’t borrow a single penny unless this special legislative committee approves its requests.  The Democrats who assigned themselves to sit on this panel should hold the governor’s feet to the fire and make him account for each and every dollar of borrowing he proposes.”