New Jersey’s Lottery Enterprise Contribution Act implemented last year is paying dividends in lowering the Garden State’s borrowing costs while also tackling pension liabilities, state treasury officials said.
The Department of Treasury
“The strong response by investors to New Jersey’s most recent bond issuances is proof that New Jersey’s fiscal future is brighter today following LECA’s enactment,” said Scudder in a statement. “The bipartisan Lottery Enterprise Contribution Act is providing a stable stream of funding to the State’s pension system while lowering the State’s borrowing costs and thereby saving taxpayers’ hard-earned dollars.”
Scudder, who was appointed by Christie, will depart soon, as Christie's term in office ends this month. Democratic Gov.-elect Phil Murphy
State officials also credited the lottery bill with
Scudder said New Jersey has issued an average of $3.7 billion in refunding and new money debt per year. If the state continues at this pace for the next 25 years, the lottery legislation’s impact is expected to save roughly $191 million in net present value debt service costs for each year of borrowing. A five-year scenario at these bonding levels could lead to $960 million in net present value debt service costs, according to treasury officials.