Doherty Resolution Giving Voters Power to Okay Future Debt Gets Assembly Approval

Assemblyman Michael Doherty said today that approval of a constitutional amendment he sponsored that calls for voters to okay all future state borrowing is a much needed and vital step towards stopping Trenton politicians from piling up future debt.

“I sponsored this legislation with the sincere belief that it will put an end to the irresponsible trend of state bonding without voter approval,” stated Doherty, R-Warren and Hunterdon. “It’s time to for state politicians to cut up their state-issued credit cards and let the hard-working taxpayers decide future bonding issues.”

The amendment, ACR-151, amends the Debt Limitation Clause of  the State Constitution to require voter approval for laws authorizing appropriation-backed debt, including contract bonds. It was approved by the General Assembly on Monday.

According to the Comprehensive Annual Financial Report for the fiscal year ending June 30, 2007, the State’s long-term debt obligations totaled $38.1 billion. This amount includes $29.7 billion of total outstanding state debt and other obligations, $3.5 billion of Tobacco Settlement Financing debt, and $4.9 billion of unsecuritized obligations such as net pension obligations, and other obligations.

“The debt burden per capita in the U.S. is under $800,” explained Doherty. “In contrast, that amount balloons to $3,700 for every man, woman and child in New Jersey, which has the third highest total debt burden in the nation. If that isn’t indicative of a government out of control then I don’t know what is.

Doherty also noted that debt service cost the State $2.6 billion in the current fiscal year. That amount represents about 8 percent of the total State budget.

“Is it any wonder we have such a difficult time crafting a State budget each year?” questioned Doherty. “Our taxpayers are demanding Trenton get its fiscal house in order. This bill will go a long way in getting it there.”

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