The state Supreme Court ruled in a unanimous decision that the New Jersey COVID-19 Emergency Bond Act—the blueprint by Gov. Phil Murphy to borrow upward of $9.9 billion in general obligation bonds from the federal government to plug a massive fiscal shortfall caused by the pandemic—doesn’t violate the New Jersey Constitution.

But in approving the borrowing plan, the court imposed limits on the amount the Murphy administration will be able to borrow and requires that either Murphy or the state treasurer certify revenues prior to each instance of borrowing and restrict borrowing only to what is necessary to cover shortfalls caused by the pandemic.

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