NJ Taps Debt-Relief Fund to Pay for Big-Ticket Items

July 14, 2023 | njspolightnews.org

Photo Credit: Alan Cleaver/Pixabay

The latest round of spending from New Jersey’s dedicated debt-relief fund will pay for, among other projects, a new training facility for the New Jersey State Police and the replacement for a troubled state women’s prison in Hunterdon County.

In all, Gov. Phil Murphy and lawmakers approved more than $370 million in new spending out of the Debt Defeasance and Prevention Fund in late June when they also enacted a new annual budget for the fiscal year that began July 1.

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NJ SEED: The Debt Relief fund is being use as intended. Continued adequate funding may be its biggest problem. Revised revenue projections for this and the next fiscal year reduce anticipated income by more than $2 billion. Based on those projections, the legislature reduced the deposit to the Debt Relief Fund from $2.35 billion to $400 million suggesting that in the future the Fund may not be able to provide help where needed.