New Jersey’s long-term debt hit $201.0 billion – steady from last year, according to the state’s 2024 Debt Report. That massive number includes everything from pension liabilities to bonds.

Here’s a look at where that debt comes from — and why it matters.

Bond Debt at $39.7 Billion

$39.7 billion of the debt is bonded – money the state borrowed by selling bonds.

Most of that ($35.3 billion) — is state- backed, meaning it’s  paid off with taxes or other dedicated state revenues.

The other $4.4 billion has to be repaid by independent state entities that generate their own income.

Who Issues the Bonds?  

The New Jersey Economic Development Authority (EDA) is responsible for $9.86 billion of the state-supported bonded debt – close to 28% of the total.

Most of this debt comes from bonds the state legislature has to approve payment for each year to approve.  Payments can be delayed or withheld entirely by this same body. Because of this risk, borrowing becomes more expensive.

Pensions & Retiree Health Benefits: $156.3 Billion

The largest share of New Jersey’s debt — almost 78% — comes from retirement obligations:

• $79.45 billion in pension liabilities
• $76.87 billion in health care and other benefits for retirees

These totals reflect actuarial estimates of the state’s still-owed liabilities, even after factoring in pension system assets.

Other Liabilities -$4.95 Billion

New Jersey also owes money in other areas:

• $967.6 million in leases
• $1.28 billion in loans
• $787.0 million for unused employee leave (sick and vacation)
• $1.84 billion in other liabilities
• $66.9 million in pollution cleanup costs

Debt Payments in FY2024: $4.05 Billion

NJ will spend $4.05 billion on debt payments this year, ~10% of the entire state budget.

• $2.44 billion will come from the General Fund (covered by taxes)
• $1.61 billion from dedicated funds like tolls, gas taxes, and lottery proceeds

Bench-marking

Comparisons helps to put things into perspective.

In the NJ’s Annual Comprehensive Financial Report (ACFR) for 2024 (published on 04/2025) the Office of the State Auditor noted that of the 14 Mid-Atlantic States, NJ had the highest negative net position at 158.7 billion.

Source: Office of State Auditor, State of New Jersey Summary and Analysis of the Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2024

While concerning this number has been steadily improving since 2020.

Source: Office of State Auditor, State of New Jersey Summary and Analysis of the Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2024

In an analysis by the Reason Foundation – New Jersey had the second highest per capita liability of all states and is fourth for total liabilities.

Every resident in NJ has a $24,000 bill attached to their existence.

For FY23 Reason found that NJ had 100 billion in pension debt – the third highest in the nation at the end of FY23.

What This Means …..

NJ Families are on the Hook

Most of the $35.3 billion in bonded debt is backed by your tax dollars either through the General Fund or fees, tolls, and other revenue sources.

Less Money for Services

With a $4 billion debt payment, fewer dollars are available for schools, roads and property tax relief.

Public Workers Face Uncertainty

With more than $150 billion owed in pensions and retiree benefits, the state has limited financial flexibility. Continued full funding of pensions is a political promise – not a guarantee.

School Districts Should Pay Attention

School construction projects and referendums rely on a state’s credit standing. A higher debt burden could impact borrowing costs or access to state aid.

It affects Renters and Homeowners alike

Even if you don’t pay property taxes directly, this level of debt affects state priorities – housing, transit, and other essential programs.

Transparency Concerns

The FY2024 debt report runs 96 pages and is heavy on spreadsheets, light on plain-language explanations.  But one thing is clear: New Jersey’s long-term debt is still enormous — and not getting smaller.  While the state’s negative net position has improved since 2020, the total $201 billion in long-term obligations has remained unchanged year over year. Whether that’s sustainable depends on whether the state keeps up with its pension payments and debt service.

At the end of the day, it’s not just about how much New Jersey owes…. it’s about who ends up paying for it.

Footnote:

When interpreting New Jersey’s debt, it’s helpful to understand how different figures are classified in the state’s official report:

Total State-Supported Bonded Debt:

This article uses the $35.3 billion figure to represent the total debt New Jersey has taken on that is supported by state revenues.  It excludes only the debt explicitly labeled as not state-supported. The report also includes a narrower definition — about $30.2 billion — used in specific tables that count only certain appropriation-backed and dedicated revenue-backed bonds.

EDA’s Bonded Share:

The $9.86 billion tied to the Economic Development Authority (EDA) refers to its “Installment Obligations,” a major part of its appropriation-backed debt. While the EDA’s total borrowing is even larger, this number reflects the portion most directly tied to the state’s general revenues.

Source Document

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