New Jersey will cut its debt service costs in fiscal 2010 by $144.8 million as the state in early June plans to refinance up to $350 million of general obligation debt in a plan approved yesterday.

Spreading principal and interest payments over a longer period of time will cost the state $19.8 million from fiscal 2010 through fiscal 2023, yet offer budget relief in the next fiscal year, which begins July 1. Officials estimate net present-value savings to be $8 million over the life of the bonds.

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