Trenton, NJ – Senate Republican Budget Officer Declan O’Scanlon warned Thursday that Newark’s fiscal crisis is deeper than the $52 million in transitional aid recently granted by the state, urging Gov. Phil Murphy to impose formal state oversight on the city.
In a letter to the governor, O’Scanlon pointed to Newark’s looming adoption of a 2025 budget that has drained a $78 million surplus in just three years. He cited testimony from Newark financial advisers at a Local Finance Board meeting acknowledging “structural imbalances” in the city’s finances and a lack of plans to repay successive state bailouts classified as loans.
“The City won’t make its first loan repayment due under last year’s ‘loan,’” O’Scanlon wrote, calling Newark’s fiscal management unsustainable.
Under his proposal, Newark would be placed under state supervision, with a monitor appointed to oversee spending, stabilize operations, and pursue federal and state grant opportunities. O’Scanlon said oversight would not only prevent further insolvency but also help Newark reform its financial practices.
Murphy’s administration has not yet responded to the senator’s request. Newark’s budget is scheduled for adoption next week.
Key Points
- Sen. Declan O’Scanlon called for Newark to be placed under state financial oversight.
- Newark has spent down a $78 million surplus since 2022 and faces mounting loan repayments.
- O’Scanlon said oversight would curb unsustainable spending and improve financial management.
Newark’s budget battle is now colliding with Trenton’s demand for accountability.