Budget & Taxes (State Budget)

This bill creates the "New Jersey Debt Defeasance and Prevention Fund" within the state's General Fund. It requires the State Treasurer to use unexpended balances in this fund to pay off existing high-interest state debt before authorizing new appropriations-backed bonds. The Treasurer may only issue new debt if the fund has no available balance or if the new debt's interest costs are lower than what could be saved by retiring existing debt with the fund. The bill also mandates that the Treasurer immediately notify the Budget Oversight Committee whenever new debt is authorized while the fund holds unspent money. This directly affects how New Jersey manages its debt issuance and repayment processes.