Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that establishes the debt defeasance fund for retiring debt and funding capital construction projects.

Highlights:

• Establishes within the General Fund a restricted reserve fund known as the "New Jersey Debt Defeasance and Prevention Fund." The "New Jersey Debt Defeasance and Prevention Fund" will be credited with the amount appropriated to the fund and such funds as the Legislature may, from time to time, appropriate for the purposes of the fund (Sec. 1.a).

• Specifies balances in the "New Jersey Debt Defeasance and Prevention Fund" may be appropriated by the Legislature only for the purposes of (Sec. 1.b): 

• Retiring and defeasing State debt;

• Including general obligation bonds and appropriations-backed bonds, and the costs thereof; and 

• Funding capital projects on a pay-as-you-go basis rather than issuing additional State debt, including general obligation bonds or appropriations-backed bonds.

• Transfers $3.7 billion from the General Funds to the New Jersey Debt Defeasance and Prevention Fund (Sec. 2).

• Appropriates $2.5 billion to retire and defease debts of the State of New Jersey, and the costs thereof, in such manner and at such times as the State Treasurer will direct (Sec. 3).

• Appropriates $1.2 billion to fund capital construction projects for which State debt is already authorized by law, or for which funding would have been derived from future State bond issuances, thereby constituting debt avoidance, subject to the approval of the Director of the Division of Budget and Accounting (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the debt defeasance fund for retiring debt and funding capital construction projects.

Highlights:

• Establishes within the General Fund a restricted reserve fund known as the "New Jersey Debt Defeasance and Prevention Fund." The "New Jersey Debt Defeasance and Prevention Fund" will be credited with the amount appropriated to the fund and such funds as the Legislature may, from time to time, appropriate for the purposes of the fund (Sec. 1.a).

• Specifies balances in the "New Jersey Debt Defeasance and Prevention Fund" may be appropriated by the Legislature only for the purposes of (Sec. 1.b): 

• Retiring and defeasing State debt;

• Including general obligation bonds and appropriations-backed bonds, and the costs thereof; and 

• Funding capital projects on a pay-as-you-go basis rather than issuing additional State debt, including general obligation bonds or appropriations-backed bonds.

• Transfers $3.7 billion from the General Funds to the New Jersey Debt Defeasance and Prevention Fund (Sec. 2).

• Appropriates $2.5 billion to retire and defease debts of the State of New Jersey, and the costs thereof, in such manner and at such times as the State Treasurer will direct (Sec. 3).

• Appropriates $1.2 billion to fund capital construction projects for which State debt is already authorized by law, or for which funding would have been derived from future State bond issuances, thereby constituting debt avoidance, subject to the approval of the Director of the Division of Budget and Accounting (Sec. 4).

Full Bill Text