Two Weeks After Declaring A Fiscal Emergency Corzine Borrows Another $2.5 Billion

Senators Thomas Kean, (R-21), and Leonard Lance, (R-23), issued the following statement today blasting the Corzine administration for agreeing to borrow an additional $2.5 billion. The additional debt will be used to fund unfinished building projects in the 31 Abbott special needs districts.

"The Governor is reneging on his commitment to the people of New Jersey to reduce the state’s debt," Lance stated. "The words are barely out of his mouth and the ink isn’t even on the paper yet on his ‘debt reduction’ plan and he intends to borrow an additional $2.5 billion. Of course the administration does not intend to seek the consent of the voters as the state constitution requires."

In a letter, the Attorney General’s office told the Supreme Court that they would borrow $2.5 billion for school construction projects. Administration officials have stated that they intend to dedicate income tax revenue to the debt service. The additional $2.5 billion in general obligation bonds will bring total state debt by some estimates to more than $40 billion. This will be one of the highest debt loads per resident in the United States.

"I am astonished that the Governor would propose to borrow an additional $2.5 billion after stating in his State of the State message that ‘It is up to those of us in this room to change the credit card culture of New Jersey’s finances, ’’’ Kean said. "Additionally, if he intends to define income tax collections as a dedicated revenue stream then all of the fiscal reforms he proposed during his State of the State won’t be worth the paper they are printed on."