New Jersey is ripping the last slip from its I.O.U. book.
In order to address a $12 billion debt, the state will refinance $300-400 million in existing bonds to take advantage of lower rates while also issuing up to $900 million more, maxing out the state’s bond capacity.
The move will keep the New Jersey’s trust fund breathing until March 2011, when lawmakers must come up with another solution to get the account through the next fiscal year.
Gov. Chris Christie continues to be against a raise in the gas tax because he believes New Jersey motorists are already paying enough for one of the nation’s toughest commutes. Christie’s office will be meeting with focus groups from the transportation industry to look for funding solutions.
“[Past administrations] were taking their credit card out for the last bunch of years,” New Jersey Transportation Commissioner Jim Simpson said. “If you are going to spend more money, you should have more income to support that.”