Voters will decide in November whether New Jersey issues $160 million of bonds to fund housing for the disabled amid uncertainty over the state's formal policy on competitive versus negotiated bids.
Assembly Speaker Garabed Haytaian, R-Warren, who is acting governor through today, signed into law on Tuesday a measure authorizing the bond issue to be placed on the Nov. 8 ballot.
If voters approve the general obligation issue, the bonds would probably be sold by competitive bidding, said Bob McHugh, a spokesman for the governor's office.
McHugh said the state department of human services would allocate the proceeds: $130 million to create or expand private housing for the disabled, and $30 million to expand and upgrade state facilities.
Gov. Christine Todd Whitman, who has been traveling out of state, has not officially accepted an advisory panel's recommendations outlining how the state should sell bonds; however, the panel's recommendations carry "great weight" with the governor, McHugh said.
Whitman appointed the panel earlier this year to issue guidelines on when the state should use competitive bidding to sell its bonds and when it should market them through negotiation with underwriters. Members include state Treasurer Brian Clymer, Attorney General Deborah T. Poritz, and chief counsel Peter Verniero.
The panel told Whitman that simple, general obligation issues should be sold competitively to keep underwriting costs down, but that for complex issues negotiated bidding should be an option.
Many market observers say the panel's recommendations would allow the state greater flexibility in doing negotiated bond deals than under former Gov. Jim Florio. But Whitman officials say they are committed to competitive bidding when appropriate.
While he could not confirm how the state would sell the issue for disabled housing, McHugh said "these bonds will be scrutinized like any others" in light of the panel's recommendations. -- Christina Pretto
