Holster v. Bd. of Trustees of Passaic County College

In Holster v. Bd. of Trustees of Passaic County College, 59 N.J. 60, 279 A.2d 798 (1971), the Court reviewed the constitutionality of the County College Bond Act, N.J.S.A. 18A:64A-22.1 et seq. By way of supplement to a prior statute, the County College Bond Act provided State support for the cost of particular capital projects initially funded through bonds issued by the county. Id. at 63, 279 A.2d 798. "The scheme contemplates that a county will issue its bonds; proceeds from the sale will then be devoted to making up the State's share of the cost. . . . Thereafter recurrent interest payments will be met by State appropriations as will the principal of the bonds at their maturity." Id. at 64, 279 A.2d 798. The Court said that "although there is doubtless a strong likelihood that payment of bonds will in fact be met by legislative appropriations, we find nothing in the statute compelling the State to make such payments as a matter of law." Id. at 67, 279 A.2d 798. Thus, the Court reasoned, the Debt Limitation Clause was not violated because successive Legislatures were not bound to make the appropriations. Ibid.