O’Dea Exposes McGreevey’s Unconstitutional State Borrowing Scam at Mayoral Debate

McGreevey Bonded $2.7 Billion to Cover Operating Expenses in 2004 State Budget, a Maneuver Later Outlawed by NJ Supreme Court 

At tonight’s mayoral debate hosted by NJCU and Hudson Media Group, Bill O’Dea exposed Jim McGreevey’s reckless, unconstitutional state borrowing scam that was later outlawed by the New Jersey Supreme Court — and that New Jersey taxpayers are still paying for today. Responding to a question about how he would stabilize taxes as Mayor, O’Dea unequivocally stated that he certainly would never follow McGreevey’s example by taking on billions of dollars in debt to fund operating expenses.

"When he was Governor, Jim McGreevey violated the State Constitution when he borrowed $2.7 Billion to balance the state budget and fund operating expenses," said O'Dea. "The maneuver was later declared illegal by the New Jersey Supreme Court, and we're all still paying for it today. With all the financial challenges Jersey City is already facing, the last thing we need is the kind of reckless, irresponsible financial management that McGreevey has shown."

Before he resigned in disgrace as Governor in 2004, McGreevey was trying to close a budget gap without making the politically challenging decisions to either cut spending, raise taxes, or both. Instead, McGreevey’s administration took the unprecedented step of borrowing $2.7 Billion to cover state operating expenses. The maneuver was widely criticized and the McGreevey administration was sued by Republican state legislators. Eventually the State Supreme Court ruled that while it could not undo McGreevey’s bond scam, similar measures would be declared unconstitutional from that point on.