Statement

Pandemic Fallout Justifies Gov. Murphy’s Borrowing Proposal

Borrowing now will speed our recovery out of this recession and protect against dramatic cuts to services.

By

Published on Apr 17, 2020 in COVID-19, Tax and Budget

On Thursday, Governor Murphy announced that the state could borrow as much as $9 billion from the U.S. Federal Reserve to fill budget holes brought on by COVID-19. In response to this announcement, New Jersey Policy Perspective (NJPP) releases the following statement. 

Brandon McKoy, President, NJPP:

“The ongoing health and economic emergency New Jersey faces from the COVID-19 pandemic justifies, if not demands, the borrowing proposed by Governor Murphy.

“New Jersey faces unprecedented challenges that endanger the economic security of families and small businesses, and stretch thin the financial resources our state relies on to help those in need. Without significantly more aid from the federal government, we are forced to choose between devastating cuts to public services that families need and borrowing billions of dollars to enable state government to meet its growing responsibilities to its residents. 

“Borrowing, especially at the levels that would be required in this crisis, should always be viewed with skepticism, especially because New Jersey in the past has too often justified massive borrowing to support tax cuts that reduced the state’s ability to invest in the building blocks of economic growth. This situation is different. Borrowing now will speed our recovery out of this recession. This will require a disciplined approach that includes reforming the state tax code to make it fairer by calling upon the wealthiest to pay their fair share toward repaying, on schedule, what the state borrows.

“Policy decisions made in the next few weeks will set the path for New Jersey’s recovery. The worst thing the state could do when it’s in a hole like this is to keep digging. As we learned after the Great Recession, a response centered on cutting services and reducing investments in public needs will only slow New Jersey’s economic recovery, prolong the suffering of those harmed most by the pandemic, and worsen existing racial and economic inequality. Borrowing funds to plug budget holes, while far from ideal, is the best way for lawmakers to avoid harmful cuts in the short-term and maintain a strong social safety net for residents losing their jobs and businesses.”

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Author

  • Brandon McKoy, President, is the chief executive of NJPP and leads the organization's efforts in shaping policy debates to advance economic justice for the many, not a chosen few. Prior to being named President of NJPP in February 2019, Brandon served as NJPP's Director of Government and Public Affairs, where he designed and implemented the organization's outreach, advocacy, and government relations activities. He also produces timely, credible and accessible research and analysis on issues including, but not limited to, economic security, the social safety net and economic opportunity.

    Brandon’s research interests include: state tax policy, the minimum wage, paid sick leave, the earned income tax credit, urban planning and criminal justice.

    Before joining NJPP in August 2014 as a national fellow under the State Priorities Partnership’s and Center on Budget and Policy Priorities’ state policy fellowship program, Brandon worked as a Program Associate at The Fund for New Jersey, where he assisted in grantmaking on public policy issues that particularly affect low-income and minority populations in New Jersey. He also worked as an AmeriCorps VISTA at HANDS, Inc., a community development corporation in New Jersey, where he worked to mitigate the negative impact of foreclosures and increase citizen participation in local decision-making.

    Brandon formerly served as the Deputy Chapter Director of New Leaders Council – New Jersey and is an alumnus of the 2013 fellows class. He currently serves on the board of the New Jersey Work Environment Council, Shelterforce and the I Am Trenton Community Foundation. He received a MA in City & Regional Planning and Policy Development from Rutgers University’s Edward J. Bloustein School of Planning and Public Policy and holds a BS degree in Social Psychology from The College of New Jersey.

    Email: mckoy (at) njpp.org | Phone: 609-393-1145 ext. 14


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