The New Jersey Supreme Court upheld a law today allowing the state to borrow $9.9 billion to cover its budget shortfall incurred from the coronavirus shutdown as states across the country continue to struggle financially
Despite a challenge by the state’s Republican lawmakers, the New Jersey Supreme Court on Wednesday upheld aallowing the state to borrow $9.9 billion to cover its budget shortfall incurred from the coronavirus shutdown as states across the country continue to struggle financially.... [+]In a unanimous decision written by Chief Justice Stuart Rabner, the court determined the law is constitutional because it meets the “emergency exemption” for an “emergency caused by a disaster.
The court denied the motion but agreed to hear the case in which the New Jersey State Republican State Committee argued the law is unconstitutional and the pandemic doesn’t meet the “emergency exception.” The state, led by Democratic Gov. Phil Murphy and a majority of Democrats in the state legislature, argued the emergency and federal funds exceptions “permit the government to create debt to meet the current fiscal emergency” and “proceeds from bonds can be used to replace revenue and fund operating expenses across multiple fiscal years.”
“Our schools can be funded, our residents and communities can be protected, and our state can move forward,” Murphy
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