January 11, 2008
Contact: Bill Murray
Jon Corzine has been telling the public that his plan will reduce debt. The opposite is true.
Jon Corzine’s plan issues almost $40 billion in additional debt. Some of the new debt will replace existing debt. But our long term debt load is not disappearing in any way, shape, or form. It is simply being pushed around. Jon Corzine has been telling the public that his plan will pay down long term bonded debt faster. The opposite is true.
Currently, our State commits approximately $3 billion in the State budget to paying down our long term bonded debt. Governor Corzine has proposed immediately reducing the level of money we set aside in the budget to pay down long term bonded debt. In the short term, there will be small revenue increases from tolls to also pay down debt, but that small increase will come nowhere close to the retreat from the current commitment to making payments to retire long term bonded debt. In the later years, our commitment will have to increase dramatically in return for the upfront savings which is why the Governor needs to increase tolls so dramatically in the out years after he has left office.