Murphy Retiring Some $2 Billion in State Debt Will Save Taxpayers Over $600 Million

February 4, 2022 | njspotlightnews.org

New Jersey’s significant debt burden has gotten a little lighter, at least on paper.

Gov. Phil Murphy’s administration announced Thursday that a final transaction needed to retire, or “defease,” more than $2 billion in bonded debt was completed earlier in the week by the Department of Treasury.

The result of the debt-relief effort is expected to save New Jersey taxpayers a combined $607 million over 10 years by reducing long-term interest costs, according to Treasury officials. NJ SEED: It is good to paydown debt. The state has a bonded indebtedness of nearly $40 billion. Reducing it by any significant amount means ultimate savings to NJ taxpayers.