New Jersey voters could end the state's ability to borrow money through government authorities if the Legislature passes a constitutional amendment to restrict state-backed bonding, thereby moving the issue onto the ballot in November.
Currently, general obligation borrowing and dedication of revenue streams to secure long-term debt must be put to a referendum. Yet state agencies, corporations, and authorities can issue debt, called state contract bonds, that is backed by the New Jersey's pledge of repayment. That type of appropriation-backed borrowing is what Sen. Leonard Lance, R-Warren and Hunterdon, is trying to stop. Sen. Raymond Lesniak, D-Union, is co-sponsor.