A bill that would allow New Jersey to borrow billions of dollars without voter approval could result in an increase of the state’s sales tax as well as property tax surcharges, an article in the Ocean County news website Brick Shorebeat.
The New Jersey COVID-19 Emergency Bond Act has drawn support from numerous labor unions and staunch opposition from legislative Republicans, who argue tax revenue shortfalls related to the coronavirus pandemic should be tampered by spending cuts rather than bonding, according to writer Daniel Nee.
He also quotes NJBIA Vice President for Government Affairs Chris Emigholz.
“A $5 billion bond will cost New Jersey taxpayers at least many hundreds of millions of dollars in additional debt service costs for the next 35 years,” Emigholz said. “New Jersey already is one of the most indebted states in the nation, and this will just mean more of our budget will go towards paying debt instead of programs that benefit our residents.”