The Department of Treasury has cleared some $2 billion in debt from the state's balance sheet, completing a process of debt reduction that began in 2021.
Debt Defeasance and Prevention Fund aimed at attacking New Jersey debt from a different front.
The administration settled on a series of general obligation, capital construction and cigarette tax revenue bonds with a total debt service cost of $3.1 billion. To retire the debt, Treasury utilized a financing tool known as defeasance. The U.S. government bonds are being held in an irrevocable escrow account. A portion of the securities plus interest earned will pay off the state-issued bonds in full when they mature.
State Sen. Paul Sarlo, chairman of the Senate budget committee, acknowledged that the emergency borrowing was rushed and took issue with the governor’s use of noncallable bonds. But, he said, the legislature stepped in to correct that “overreaction” by creating the debt defeasance fund. Treasury’s Sciortino said the fund is expected to eliminate $5.31 billion in the long-term debt, between both the debt defeasance and debt reduction components.from the debt prevention fund for construction projects, including $310 million for the New Jersey Wind Port in Lower Alloways Creek.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
N.J. to extend COVID public health emergency for at least another month, Murphy saysThe news comes at the same time Murphy announced masks will no longer be mandated inside schools and childcare facilities beginning March 7.
Read more »
Here are the details of Gov. Murphy’s plans to lift N.J. school mask mandate next monthGov. Phil Murphy said Monday the state will end the mandate on March 7.
Read more »
Is Murphy’s decision to lift N.J. school mask mandate based on politics? No way, he says.Murphy’s announcement comes even though the U.S. Centers for Disease Control and Prevention is still recommending face coverings in schools and daycares across the country.
Read more »
Florida man rammed military police vehicles, dragged officer at N.J. base, feds sayAn officer was dragged several feet with a car during the assault at Joint Base McGuire-Dix-Lakehurst in South Jersey, according to authorities.
Read more »
Travel nurse allegedly set coworker on fire, N.J. hospital saysThe travel nurse fled by car after allegedly attacking a coworker.
Read more »
Accused killer arrested in shooting of 39-year-old N.J. man, prosecutor saysA Warren County man was shot to death Friday, according to the Passaic County Prosecutor's Office.
Read more »