The New Jersey State Supreme Court today unanimously ruled that the borrowing under the COVID-19 Emergency Bond Act is constitutional and may go forward. Assembly Speaker Craig Coughlin released the following statement:
“I am pleased the State Supreme Court unanimously validated the action taken by the Legislature to address the unprecedented needs created by the public health crisis brought on by the COVID-19 pandemic.
“An unparalleled course of action is necessary. The coronavirus pandemic represents the greatest public health and economic challenge we have faced since the Great Depression, nearly a century ago. Giving the compelling nature of the times we are in, the Legislature took the necessary steps to enable borrowing by the State.
“Our residents face record unemployment, loss of business and difficulty in paying rents and mortgages. The middle class is struggling to make ends meet.
“The State Treasurer has estimated billions in loss of revenue. It’s an economic tsunami that requires an extraordinary action. While not ideal, we must borrow the necessary funds through bonding.
“The court’s decision provided reasonable measures to guide borrowing. We will work within those parameters and ensure proper Legislative oversight is included. With this, our economic position will be strengthened for both the present and future.”