borrowing

"New Jersey Pays Goldman Sachs for Swaps on Nonexistent Bonds"

Headline of a Bloomberg News article Published on Oct. 23

Senator Steve Oroho, a Republican member of the Senate Budget and Appropriations Committee, said he doesn't understand how the Corzine administration can call the Republican complaint to the federal Securities and Exchange Commission "frivolous" when respected professionals in the investment community know that the complaint raises valid concerns.

Urges End to Wall Street Games That Destroyed Our Economy

Senate Republican Budget Officer Anthony R. Bucco strongly condemned the Joint Budget Oversight Committee's approval of a debt restructuring gimmick that Governor Corzine plans to use to push more of today's crippling debt burden on to our children and grandchildren.

"The 'savings' that the treasurer is predicting from this debt sale are an illusion cooked up by desperate politicians and their enablers on Wall Street," Bucco said. "The proposal clearly proves Governor Corzine and legislative Democrats will continue to rely on unforgivably irresponsible gimmicks like many others that Wall Street has hawked to New Jersey over the past eight years."

The Joint Budget Oversight Committee today approved a restructuring of bonded debt whereby the state will skip more than $100 million in payments in 2010 in return for higher debt and dramatically higher payments in future years. Corzine's budget relies on this plan and "savings" totaling more than $400 million from similar bond gimmicks that it has thus far refused to detail to the public.

"Everyone in America has learned the painful lessons of irresponsible borrowing it seems except Governor Corzine and the legislative Democrats," Bucco said. "This is the same kind of borrowing that led to the subprime mortgage disaster and the current economic crisis."

Incredibly, Assembly Budget Chairman Lou Greenwald stated at today's meeting that Corzine's refinancing is exactly what average Americans all across the country are doing every day. Bucco points out that many Americans are refinancing at lower interest rates to truly reduce their payments and borrowing costs -- not to add debt, push today's expenses on to their children or boost their interest costs. Yet the bond documents show this refinancing will both greatly increase both debt owed by the state, and the expense of paying back that debt.

"Adding to the crippling debt we are placing on our children is inexcusable, and that's why I voted against this measure," Bucco said.

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Governor Corzine keeps sticking his fingers in the dike as new leaks in the state's revenue stream develop daily. It's clear now that he's running out of fingers, Senator Bucco said.

The six Republican members of the Senate Budget and Appropriations Committee said today's testimony shows Governor Corzine has created a breathtakingly irresponsible budget that will inevitably result in crippling tax increases on New Jersey's middle class if he wins re-election.

Senate Republican Leader Tom Kean Jr. called on Governor Corzine today to cancel a sale of $750 million of transportation debt planned for this Wednesday that has no payment of principal until 2023.  He is calling for the Governor to work with Republicans who have offered alternatives to endless debt and to restructure any debt so that it has reasonable and responsible payment plans.

Bucco Asks What this New Highway Borrowing Scheme Is Going to Cost Us

Senator Anthony Bucco, a senior Republican on the Senate Budget and Appropriations Committee, said he was outraged to learn that the latest $750 million borrowing for the New Jersey Transportation Trust Fund proposes that the state not pay one dime in principal on much of the borrowing until 2023.

Corzine Set to Give Abbot Districts $2.9 Billion for Full Cost of Projects

Senator Robert Singer (R-30) issued the following statement in response to Governor Corzine's approval of legislation today that will borrow another $3.9 billion for school construction projects, including $2.9 billion for projects in Abbott districts:

Corzine Should Keep Pledge to Seek Voter Approval for New Debt

Senator Leonard Lance (R-23), the Republican Budget Officer, responded to the introduction of legislation that would allow the New Jersey Economic Development Authority to borrow $3.5 billion for school construction without voter approval. The legislation, S-1457, was introduced by Senators Turner and Rice on March 6.