Bill Text: NJ S355 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires New Jersey Educational Facilities Authority to annually prepare report on debt held by public institutions of higher education.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-14 - Introduced in the Senate, Referred to Senate Higher Education Committee [S355 Detail]
Download: New_Jersey-2020-S355-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Requires New Jersey Educational Facilities Authority to annually prepare report on debt held by public institutions of higher education.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning reports on debt held by public institutions of higher education and supplementing chapter 72A of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The New Jersey Educational Facilities Authority shall annually publish a report detailing the debt ratio and debt burden ratio for each public institution of higher education in the prior academic year. The debt ratio shall be calculated as follows:
debt ratio = expendable net assets / long-term debt
For the purposes of the calculation, expendable net assets shall include unrestricted and restricted expendable net assets, except those that are invested or to be invested in fixed assets, and long-term debt shall include all amounts borrowed for long-term purposes from third parties, and shall include all notes, bonds, loans, and capital leases that impact the institution's credit, whether or not the institution directly owes the obligation.
The debt burden ratio shall be calculated as follows:
debt burden ratio = debt service due / total expenditures
b. The authority shall submit the report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than January 1 following the academic year for which the report is prepared.
2. This act shall take effect immediately and shall first be applicable to the first full academic year beginning after the date of enactment.
STATEMENT
This bill requires the New Jersey Educational Facilities Authority to annually submit a report to the Governor and Legislature detailing the debt ratio and the debt burden ratio for each public institution of higher education. The bill defines the debt ratio as an institution's expendable net assets divided by its total long-term debt, while the debt burden ratio is defined as the institution's debt service due divided by its total expenditures.
