ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

ASSEMBLY, No. 13

STATE OF NEW JERSEY

DATED:  JUNE 22, 2021

      The Assembly Budget Committee reports favorably Assembly Bill No. 13.

      This bill establishes the "New Jersey Debt Defeasance and Prevention Fund" for the purposes of: 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.

      The bill requires a $3.7 billion credit from the General Fund to the "New Jersey Debt Defeasance and Prevention Fund," which is to be appropriated as follows: $2.5 billion for the purpose of retiring and defeasing State debt; and $1.2 billion for the purpose of funding certain capital construction projects.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.