Office of the State Treasurer

(TRENTON) State Treasurer John E. McCormac issued the following statement in response to today's decision by the New Jersey Supreme Court in the case of Steven M. Lonegan; Stop the Debt.Com LLC v. State of New Jersey, et al.:

"The court has issued a well reasoned and clear opinion on appropriations-backed debt issued by the State.

"We are gratified that debt issuance policy historically observed by the State has been upheld. We also recognize the State's perpetual obligation to exercise due discretion and fiscal restraint in all public finance decisions.

"The court makes it clear that the State must be given some flexibility with its borrowing policies. There are many programs like open space acquisition and transportation improvements where debt management allows us to maximize purchases and projects in the short term, and we are pleased that these initiatives can continue."

"We believe that the authority to incur debt is a constitutional privilege that the State should always respect and never abuse."