New Jersey lawmakers on Thursday introduced a bill that would give the state’s largest asset-management firm $100 million in unclaimed funds from the sale of its assets.
The New Jersey Senate voted 26-9 to authorize the legislation that will fund the fund until the state can find another source of money.
The bill has been praised by some of the nation’s most prominent philanthropists and has been criticized by others who worry the fund may end up losing its value if it’s not funded.
The legislation was introduced by Sen. Stephen Lynch, a Democrat from the western New Jersey city of Monmouth, and Sen. Donald McDonough, a Republican from nearby Monmouth.
It would create a trust fund of $100 billion to be used for any purpose, including the creation of new tax revenue.
It’s unclear how much of the fund would go to the fund’s current managers and whether it would also be used to pay off debts.
The $100-million fund, called the Philadelpha Bail Fund, was established by former New Jersey Gov.
Jon Corzine in 2009 to invest in companies with high risk.
The fund is managed by New Jersey-based hedge fund BlackRock Inc., which was founded by billionaire financier George Soros.
The trust fund is expected to provide more than $300 million to the state annually, according to state officials.
Corzine’s trust fund has paid out about $1.5 billion since 2009, with another $800 million in 2014.
In the 2016-17 fiscal year, the fund received more than half of the funds it had in it, according.
The state would pay about $100 in interest each year on the funds, the state budget office said.
The plan is being closely watched because it would provide some of New Jersey taxpayers with some of their own money.
The state is one of only a handful of states with no income tax and has the lowest corporate income tax rate in the country, according in the nonpartisan Tax Foundation.
The proposal has drawn criticism from the public policy community.
The funds creation, which was approved with a bipartisan Senate and House vote, has been opposed by some lawmakers who fear the trust fund will be unable to cover its obligations if the funds are not invested in a viable investment.
“The New York Times and others have criticized the idea of creating a trust for a company with no hope of being successful,” said Sen. Robert Menendez, a New Jersey Democrat who chairs the Senate Finance Committee.
“The idea that the trust is somehow an investment vehicle to be invested with the hope of a company being successful is ludicrous.
That’s not how a company is supposed to operate.”
A separate proposal from Sen. Joe Vitale, a Long Island Democrat, would allow the state to take back the assets of a fund that is held in trust by a state agency or an estate.
The money would be transferred to the agency or estate that created the fund and would then be released to the investors.
The program has also been criticized from some who worry that it would only be used in the short term.
“We have a very limited amount of money in the fund,” said Christopher Johnson, a spokesman for the state Senate Finance and Budget Committee.
“It would be a great tool for people who are trying to buy into something but the short-term results would be less than the potential returns.
It’s not going to help a company when they have a $50 billion portfolio.”
While it would not pay for itself, the $100 bill would also save the state from having to spend money on a massive infrastructure project that has been delayed for years, said Menendez.
A spokesman for BlackRock declined to comment on the bill.
The State of New York, which also holds a $1 billion fund that it can use for infrastructure and other purposes, has received more money from the Phila-Bail fund than any other state.