Despite questions, N.J. plan for higher education advanced by Senate Budget Committee

The effective date of the restructuring is being delayed until July of 2013 so it won’t have a financial impact on the state budget that has to be enacted by the end of the month.

Andrew Henry, the executive director of the Senate majority office, told lawmakers the South Jersey part of the plan uses existing resources so it won’t cause additional expenses. He says the estimated $40 million one-time costs for Rutgers to acquire most of UMDNJ would be offset by lower cost debt. “The refinancing of UMDNJ’s debt being absorbed into Rutgers University’s debt net of the costs associated with the transaction, so bond counsel and the other things that go into it, would provide a $40 million dollar present value savings,” said Henry. Some lawmakers say they still have unanswered questions about the plan and hope they’ll be resolved before the measure goes to a vote on the Senate floor.