New Jersey Republicans panned a state Supreme Court decision Wednesday that allows Gov. Phil Murphy to borrow $9.9 billion in federal funds, while the governor said more relief from federal authorities is needed.
The court ruled unanimously the borrowing plan did not violate the state constitution but says Murphy cannot borrow more than is needed.
“In other words, if, at the time the State seeks to borrow money or issue bonds, the Governor or the Treasurer certifies that the shortfall resulting from the pandemic is estimated to be $7 billion, the State cannot borrow more than that amount,” the Court said in its opinion.
Assemblywoman Holly Schepisi, R-Bergen, called it “a very unfortunate decision.”
Sen. Joe Pennacchio called it a “sad day for New Jersey” on his Facebook page.
“Incredibly it says the treasurer must certify the need for those dollars in the budget,” Pennacchio said in the post. “The Governor of course will just create an inflated budget!”
Assembly Speaker Craig Coughlin praised the decision.
“The court’s decision provided reasonable measures to guide borrowing,” Coughlin said in a statement. ‘We will work within those parameters and ensure proper legislative oversight is included.’
Murphy said he was grateful for the court’s decision at his Wednesday news conference, and he pushed back after being asked about the long-term implications of borrowing such a large amount, with future generations on the hook for repaying it.
“There’s also New Jerseyans that haven’t been born yet whose parents we’re trying to keep alive so the kids can be born,” Murphy responded. “This is a pandemic unlike anything that has ever happened before. We’re also in a corner, and we’ve got to be there for our residents.
The governor again criticized Congress for not coming up with a relief plan for states.
“This cannot continue to twist in the political winds,” Murphy said. “We cannot rely on half measures that were proposed over the weekend that have no clear guidance and which push even more costs on the states.”
President Donald Trump’s additional $400 a week for unemployed workers would cost New Jersey $1.725 billion in just benefits, not including how much it would cost to set up the system.
The governor saved his harshest criticism for U.S. Senate Majority Leader Mitch McConnell, who dismissed the Senate while negotiations were ongoing.
“You know the phrase, ‘go big or go home?’’ Murphy asked. “It’s hard to believe this, but he went home. With all due respect Mr. McConnell, history will be kind to us and to you if we overshoot, if we go too big, but history will be unsparing if you come up small as you have so far.”
Murphy will deliver a budget for fiscal year 2021 on Aug. 25. He said it has not been decided if that will be done in person.
