Sarlo: Paying Down $3 Billion in High-Interest Debt Makes NJ More Affordable for Taxpayers

Treasury’s debt defeasance complies with cost-saving budget requirement added by Legislature

Trenton – Senate Budget Chair Paul Sarlo today said Treasury’s plan to pay down $3 billion in high-interest debt underscores the importance of the Legislature’s insistence on the establishment of a debt defeasance fund during budget negotiations.

“Our focus in crafting the last two budgets has been on affordability and fiscal responsibility, and our ability to pay down $3 billion in high-interest debt will produce more than $600 million in savings for New Jersey taxpayers,” said Senator Sarlo (D-Bergen).

“Paying down this debt early builds on the savings achieved by making a full up-front pension payment for the first time in decades, freeing up the state budget to make critical investments that will benefit future generations, create jobs and make New Jersey affordable for all of our citizens,” he said.