TRENTON, NJ – Senate Republican Budget members are calling on Governor Phil Murphy and NJ State Treasurer Elizabeth Maher Muoio to address the state’s financial disclosures prior to an upcoming $1.5 billion bond sale. The lawmakers expressed concerns about New Jersey’s $4 billion structural budget deficit needing transparency for potential investors.
Senators Michael Testa (R-1), Doug Steinhardt (R-23), and Carmen F. Amato, Jr. (R-9) delivered a letter outlining their worries on this issue. They warned that without appropriate documentation from the Treasury Department, they would consider joining Senator Declan O’Scanlon (R-13) in filing a formal complaint with the U.S. Securities and Exchange Commission.
The letter states, “Like Senator O’Scanlon, we do not take the step of filing a complaint with the SEC lightly.” The Republicans emphasized that state financial disclosures need to balance positive elements, such as full pension payments, with revelations of unsustainable budget practices and a $1.2 billion appropriation spike in the next state budget.
In the letter, they highlighted the importance of full disclosure as a legal requirement under federal law, stating, “Failing to provide it exposes the State to substantial legal risks.” They cited a prior SEC investigation into misleading disclosures from 2001 to 2007, which resulted in a consent order that damaged the state’s reputation with financial markets.
The legislators also stressed that transparency in state finances is necessary for good governance. They asserted that without sufficient disclosures, critical financial issues could remain unaddressed.
The Senate Republicans are making their position clear as the bond sale approaches. The call for transparency reflects ongoing issues in how state finances are communicated to the public and potential investors.