VOTE NO – NJ Ballot Question #1: Deception at its best courtesy of Lance & Lesniak

Democrat or Republican – it just doesn’t matter. This is classic deception at its best.

HIGHLIGHTS

• By voting YES, you’re actually allowing the NJ Constitution to be changed to conform to the Trenton Cosa Nostra to pledge the full faith and credit of the State.
  

• It means billions could be borrowed without voter approval to build dozens of $150 million high schools, complete with state-of-the-art theaters,stadiums, and day-care centers.

• A “Yes” vote on Ballot Question #1 means Governor Corzine and the
  State Legislature could pass a simple law to refinance every dollar of the $37 billion
  borrowed by state authorities without voter approval.

• Once the full faith and credit of New Jersey is pledged, all state
  sales tax money is earmarked to pay that debt before it is spent on anything else.
  
• When its full faith and credit is pledged, the State is legally obligated to impose a new
  statewide property tax to pay its debts, whenever sales tax revenues are not sufficient.

• State Legislature could pass a simple law to refinance every dollar of the $37 billion borrowed by state authorities without voter approval. If they do that, the state will give up its legal right to refuse to spend taxpayer dollars on such “unconstitutional” debt.

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State Senators Leonard Lance (Republican) and Raymond Lesniak (Democrat)  claim a
“Yes” vote for their proposed “bipartisan” Constitutional Amendment (State Ballot
Question #1 for this November’s election) would stop independent authorities like the
EDA (Economic Development Authority) from borrowing billions of dollars without voter
approval. But the opposite is true.

Earlier this year, Governor Corzine tried to hock our toll roads to pay off $40 billion in
state debt. But the governor never said the state was legally on the hook for only $3
billion. The other $37 billion was created by independent authorities without voter
approval. As a result, the state legislature does not legally have to pay roughly $3
billion each year on that debt, and can stop payment at any time.
Every bond sold by these authorities clearly state that this was speculative junk debt
and not guaranteed by New Jersey taxpayers.

Under our present Constitution, only the voters can provide that security.

But a “yes” vote on Ballot Question #1 would change all that. It would
change the Constitution and allow state politicians to pledge the full faith and
credit of the state without voter approval for the first time since 1844. You won’t know
that if you just read the Ballot Question, and Interpretive Statement. The details are
buried in Senate Concurrent Resolution #39 which created them.

Senate Concurrent Resolution #39 states that voter approval will not
be needed to guarantee the bonds of any “autonomous public corporate entity” if there is “an
independent non-State source of revenue paid by third persons” or “a
source of revenue otherwise required to be appropriated pursuant to another provision of
this Constitution”.

This means billions could be borrowed without voter approval.

It means billions could be borrowed without voter approval to build
dozens of $150 million high schools, complete with state-of-the-art theaters,
stadiums, and day-care centers. Any political “educator” can certify that they are needed to
provide a “thorough and efficient education” as required by our State Constitution – or
qualify under the “Property Tax Relief Fund”. But the most dangerous provision of Ballot
Question #1 is this:

“No voter approval shall be required for any such law. . . authorizing
the creation of a debt or debts. . . for the refinancing of all or a portion of any
outstanding debts or liabilities of. . .
an autonomous public corporate entity,”

A “Yes” vote on Ballot Question #1 means Governor Corzine and the
State Legislature could pass a simple law to refinance every dollar of the $37 billion
borrowed by state authorities without voter approval. If they do that, the state will
give up its legal right to refuse to spend taxpayer dollars on such “unconstitutional” debt.

Once the full faith and credit of New Jersey is pledged, all state
sales tax money is earmarked to pay that debt before it is spent on anything else. When
its full faith and credit is pledged, the State is legally obligated to impose a new
statewide property tax to pay its debts, whenever sales tax revenues are not sufficient. If
you don’t believe it,
look at the fine print of last year’s Open Space bond legislation.

A “Yes” Vote on Ballot Question #1 will guarantee that this borrowing,
and the waste and corruption that goes with it, continues.

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For more information, visit http://www.libertyandprosperity.org or contact
Somers Point attorney Seth Grossman at seth@dandy.net or 609-927-7333. Seth Grossman hosts a
two way talk radio program on 1020AM Mondays-Fridays from 3PM to 5PM,
and breakfast discussion groups Saturday at 9AM at the Athena Diner, on New Road
between Tilton and New Roads in Northfield.