The constitutionality of the new law authorizing state debt without voter approval is about to be reviewed by the New Jersey Supreme Court. At issue is whether the state can issue these bonds because of the COVID-19 emergency, and if the proceeds can be used as revenue to balance the budget. This is not normally permitted.
Assuming the court will rule in favor of allowing the state to borrow for revenue purposes, how much debt should be issued and what are the related policy implications?