Thompson calls for accountability as governor continues to borrow $ 60 million a week to fund unemployment benefits

Says federal relief money should be used to restore UI fund and save jobs

As the Murphy administration continues to borrow nearly $ 10 million a day from the federal government, Senator Sam Thompson has called on the governor to provide an accurate estimate of how much debt will remain with state employers. to be repaid thanks to the massive tax increase next month. .

“New Jersey is going into debt at an alarming rate, and Murphy’s only plan is to pass the cost on to employers, many of whom are barely surviving in the COVID economy,” said Thompson, a Republican member of the Senate committee. budget and appropriations. “This is a dangerous tax system that could bankrupt countless small and medium-sized businesses and the loss of hundreds of thousands of jobs. It is reckless and unjustifiable.

To pay benefits, the New Jersey Insolvent Unemployment Insurance Trust Fund borrows money from the federal government at an interest rate of 2.3%. At nearly $ 60 million a week, debt more than quadrupled last month, now exceeding $ 300 million.

Only eight states – California, New York, Illinois, Hawaii, Minnesota, Pennsylvania, New Jersey, and Texas – in the country continue to borrow money from the federal government to pay unemployment benefits, and only California and New York borrow. faster. rate. Over the past month, New Jersey has benefited more than Texas and Illinois combined.

“This outrageous borrowing was only made necessary because of Murphy’s refusal to use some of the billions of dollars New Jersey received in federal pandemic relief funds to maintain the solvency of the unemployment fund. “said Thompson. “Almost every other state with high unemployment has used federal funds to avoid borrowing money to pay unemployment claims. New Jersey is once again racking up debts that it will force taxpayers to pay off through tax increases. “

Murphy estimated the state’s unemployment insurance debt would climb to $ 1 billion by June 30, but Thompson said he doubted the accuracy.

“At this rate, Murphy will be borrowing more, much more, than he estimated. It’s time to update your projections and be frank with the people of New Jersey who will be impacted by this wayward borrowing tactic. It’s like this governor is determined to be the biggest borrower and have the worst unemployment rate in the country, ”said Thompson, adding that only four states have unemployment rates above the current 7.2% in New Brunswick. Jersey.

Thompson also noted that the governor was sitting on a $ 2.5 billion fund that had been available to pay down debt since its inception in June and had not been spent. Not a penny of the debt has been paid.

Every Republican senator and member of the assembly has signed a petition that would constitutionally compel the legislature to come together to use federal funds to stop escalating debt and prevent a tax hike scheduled for Oct. 30.

It would only take the signatures of seven Democrats in the Senate and 13 in the General Assembly to force action to end the job-killing tax increase. None signed it although many issued hollow press releases saying they opposed the governor’s tax hike.

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