b'CODING Update ComplianceLEGAL NUTRITIONUpdateANJC NewsANJC Leadership ANJC News! NUTRITION LEGAL EASEANJC Scholarship REHAB Update Executive Directors Update LEGAL Q&A CHIRO AssistNew JerseysLegislative UpdateINSURANCE Update INSURANCE UpdateBorrowing PlanBy Jon Bombardieri - ANJC Government Affairs Counsel TECHNIQUE UpdateFiscal Year 2021 are projected to bethese bonds would be backed by the 17.8% ($7.35 billion) lower than priorstates property and sales tax. While projections. the legislation permits short-term MedicareQ&AMedicare Update borrowing, it also allows refinancing Governor Phil Murphy has said thatthat could ultimately push the debtOUR HEALTHrevenue collections for April of thisand interest payments out as long as year have dropped by nearly 60%. This35 years.was due to the fact that the state has pushed income and business tax filingsSenate President Stephen Sweeney to July 15th. has said that he is open for discussions Murphy said he wants to borrow theon the issue, but has not yet endorsed money to plug growing holes left inthe idea. However, Speaker Craig the states budget by the Covid-19Coughlin has said he is supportive of the plan and has scheduled to move pandemic, as uncertainty grows asthe legislation, A-4175 (Pintor Marin), to whether the state can get enoughfor a full vote of the General Assembly.federal aid.Bill Sponsor and Assembly Budget The Federal Reserve unveiled plansChairwoman Pintor Marin said, We earlier this month to buy up to half amust take action to ensure our fiscal New Jersey could be facing a shortfalltrillion dollars in bonds from state andviability by empowering the state to of more than $10 billion through thelocal governments to shore up theirapply for and receive federal stimulus end of the next fiscal year becausefinances. The state could, but wouldloans for the benefit of the state of the economic impact from thenot necessarily, borrow $9 billion,and local government units as they coronavirus pandemic, according tobut that would be the most availablerespond to the negative impacts of new preliminary projections from theunder the Federal Reserves plans. the coronavirus. We do not make this New Jersey Department of Treasury Under New Jerseys Constitution, thedecision lightly. The historic nature of Based on a wide variety of economicstate is fairly limited in its ability tothe current pandemic has led to this assumptions, the State of New Jerseyuse borrowing as a means to coverunprecedented last resort due to the may be looking at a combined $10.104its annual budget. However, it doescurrent fiscal crisis.billion revenue shortfall over theinclude a carve-out for purposesThe legislation has yet to be introduced remaining months of Fiscal Year 2020of war, or to repel invasion, or toin the Senate, where they are looking through the end of Fiscal Year 2021,suppress insurrection or to meet anfor more details on the governors Treasurer Elizabeth Maher Muoio said.emergency caused by disaster or act ofplan. Sweeney has said that he wants While there are many moving parts,God. Legislation, entitled the Newto know how the administration plans what is clear is that this decline wouldJersey Covid-19 Emergency Bondto pay back long-term bonds. The be worse than the Great Recession. Act, would provide wartime powersincome tax is constitutionally dedicated New Jersey, like many other states, isand authorize the issuance of $5 billionto funding only property-tax relief anticipating a severe budget crunch asin state general obligation bonds toin New Jersey, and the sales and businesses have temporarily shutteredbe used for the purpose of respondingcorporate-business taxes, two other and economic activity has slowed dueto the fiscal exigencies caused bymajor sources of revenue, are likely to to Covid-19. New Jersey is the onlythe Covid-19 Pandemic. The bill alsobe strained for a long time. Until the state to push back its budget deadline,authorizes the governor to apply forSenate president has more clarity on from June 30th to September 30th. and receive federal stimulus loans forthe issue, the Senate will not be moving the benefit of the state, to apply forthe legislation in the near future. Projections provided to the legislatureand receive federal stimulus loans by the Treasury estimate that revenuesfor the benefit of local government from the current fiscal year will be 7%units, and authorizes the issuanceJon Bombardieri and his firm, CLB ($2.76 billion) lower than what wasof refunding bonds and emergencyPartners, serve as the Government Affairs previously projected. Revenues fromliquidity notes. Per the legislation,Counsel to the ANJC.10 I Summer 2020 www.anjc.info'