N.J. Stat. § App.A:4-66
In considering any resolution in connection with the issuance of any refunding bonds, presented to it for the indorsement of its consent thereon, the Local Government Board shall have regard to the probable capacity of the school district to pay at their maturity the refunding bonds proposed to be issued and all other indebtedness then outstanding, taking into consideration both the assessed and the true value of taxable property, and to the equitable distribution of the burden of interest and debt redemption charges in connection with the refunding bonds and other indebtedness theretofore or which may necessarily thereafter be incurred. If the Local Government Board shall refuse to indorse its consent upon any such resolution, it shall make and certify to the school district a statement of its reasons for so refusing.
N.J.S. § App.A:4-66