Elimination of 5% downpayment requirement for county and local bonding passes out of committee

TRENTON – The Senate Budget Committee this afternoon passed a bill sponsored by Senate President Steve Sweeney (D-West Deptford) that would kill a 5% down payment requirement for bond ordinances approved by counties and municipalities. 

“The only way you invest in infrastructure is with longterm financing,” argued Senate Budget Committee Chairman Paul Sarlo (D-Wood-Ridge) for the Democratic Party majority.

State Sen. Michael Doherty (R-Washington Twp.) led Republican senators Steve Oroho, Anthony Bucco, Joe Pennacchio Sen. Kevin O’Toole in opposition to SB 2209.

“I don’t think making it easier to borrow money is a good thing,” said Doherty. “We’re making the public pay back principal and interest on money that was created out of thin air.”

Added Pennacchio, “The economic climate we have right now was precipitated by easy money.”

State senators M. Teresa Ruiz, Brian P. Stack, Barbara Buono, Sandra Cunningham, Bob Smith, and Jim Beach echoed Sarlo’s “aye” vote to move the bill, 7-5. Elimination of 5% downpayment requirement for county and local bonding passes out of committee