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New Jersey Could Allow Local Governments to Borrow to Avoid Budget Cuts
Route Fifty: Local leaders in New Jersey could issue "coronavirus relief bonds" to help offset shrinking tax revenues under a bill passed this week by state lawmakers.
The legislation, passed 24-16 by the state Senate on Thursday, would allow counties and municipalities to borrow up to 30% of the previous year’s budget with a repayment period of up to a decade, backed by local property tax revenue. Localities could also seek permission from the state to borrow higher amounts with longer repayment periods.
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