July 19, 2013
Re: “Not in New Jersey Municipal Bankruptcy Advocates: California Dreamin’”
Late yesterday the news broke that the City of Detroit filed for bankruptcy. In light of that news we thought it would be worthwhile to republish an article from Tom Neff, Director of the Division of Local Government Services and Chairman of the Local Finance Board outlining how municipal bankruptcy is not a viable option in New Jersey anytime soon.
“Not in New Jersey Municipal Bankruptcy Advocates: California Dreamin’”, which initially appeared in the February 2013 magazine is available at http://www.njslom.org/magazine/2013-02/Municipal-Bankruptcy.pdf.
As noted in the article, New Jersey’s local government financial system promotes local government solvency by:
(1) requiring local governments to appropriate funds to meet their financial obligations, including debt payments;
(2) prohibiting certain risky investments and irresponsible borrowing; and
(3) licensing certain professionals including assessors, tax collectors and other government finance professionals.
We hope you find this article useful to address any questions that may arise in your community.
Very truly yours,
William G. Dressel, Jr.