TRENTON, NJ – Senate Budget Officer Declan O’Scanlon sent a letter to New Jersey State Treasurer Elizabeth Maher Muoio, requesting immediate updates on financial disclosures previously shared with rating agencies and the financial market. O’Scanlon asserts that Governor Murphy’s administration has concealed a budget deficit of $4 billion that could burden the next Governor and Legislature.
O’Scanlon warns that if the administration does not address the financial situation before selling $1.5 billion in new debt this month, he will file a complaint with the Securities and Exchange Commission. “After reviewing Treasury’s financial disclosures, I felt like someone at a disreputable used car lot had tried to sell me a car without telling me it was recovered from a flood,” said O’Scanlon.
In his letter, the senator criticized the treasury for failing to adequately represent the state’s financial condition. He noted specific omissions, stating that the documents did not clarify about $4 billion of financial “cliffs” designed into the upcoming state budget.
O’Scanlon emphasized the need for transparency in financial reporting. He added that the material presented by the treasury was misleading, both in its stated content and omissions that are critical for reasonable evaluation by rating agencies and analysts.
O’Scanlon’s letter highlighted the moral and legal responsibilities treasury holds toward the public. He insisted that the public and financial markets deserve complete information about the state’s financial health.
The full letter from O’Scanlon can be accessed through the Senate Republicans’ website.
O’Scanlon’s demands come amid heightened scrutiny of state finances, as the administration prepares for potential new debt obligations. The senator’s call for transparency signals ongoing concerns about fiscal management in New Jersey.