LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 2857

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JUNE 9, 2023

 

 

SUMMARY

 

Synopsis:

Establishes “Sustainable New Jersey Fund” in DCA to support certain

sustainability initiatives; appropriates $1 million.

Type of Impact:

Annual State expenditure increases.  Annual revenue and cost increases to public institutions of higher education.

Agencies Affected:

Department of Community Affairs; Public institutions of higher education.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Annually Thereafter 

 

 

State Cost Increase

Up to $1 million

Indeterminate

 

 

Public Institution of Higher Education Revenue Increase

Up to $1 million

Indeterminate

 

 

Public Institution of Higher Education Cost Increase

Up to $1 million

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill may result in a State expenditure increase of up to $1 million in the first year the bill is in effect.  The Department of Community Affairs will incur costs relating to the Sustainable New Jersey Fund established by the bill.  If the full $1 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $1 million is exhausted. 

 

·         The bill requires the moneys from the Sustainable New Jersey Fund to be distributed to a public institution of higher education which has a partnership with a qualified nonprofit organization and then requires the public institution of higher education to distribute the moneys to the qualified nonprofit organization, resulting in both a revenue and cost increase to the public institution of higher education. 

 

·         The bill also requires the Legislature to annually appropriate an unspecified amount to the Sustainable New Jersey Fund in subsequent fiscal years, which amount the OLS is unable to predict.

BILL DESCRIPTION

 

      The bill establishes the Sustainable New Jersey Fund in the Department of Community Affairs, makes an appropriation of $1 million to the fund, and directs the Legislature to annually appropriate additional moneys to the fund.

      Under the bill, the Department of Community Affairs is required to annually distribute money in the fund to a public institution of higher education that has an existing contractual relationship with a qualified nonprofit organization, as defined in the bill, that offers certifications and grants to municipalities and public schools across the State in support of efforts to realize environmental, economic, and social sustainability.  The public institution of higher education is required to distribute the funds to the qualified nonprofit organization to support the provision of the certification and grants for the purpose of enabling continued support to municipalities and public schools. 

      The bill requires that the fund be annually credited with moneys appropriated by the Legislature, which moneys are required to be disbursed to the public institution of higher education partnered with a qualified nonprofit organization.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill may result in a State expenditure increase of up to $1 million in the first year the bill is in effect.  The Department of Community Affairs will incur costs relating to the Sustainable New Jersey Fund established by the bill.  If the full $1 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $1 million is exhausted.  The bill requires the moneys from the Sustainable New Jersey Fund to be distributed to a public institution of higher education which has a partnership with a qualified nonprofit organization and then requires the public institution of higher education to distribute the moneys to the qualified nonprofit organization, resulting in both a revenue and cost increase to the public institution of higher education.  The bill also requires the Legislature to annually appropriate an unspecified amount to the Sustainable New Jersey Fund in subsequent fiscal years, which amount the OLS is unable to predict. 

      Municipalities and public schools may also see an increase in revenue in the form of receipt of grant assistance through the qualified nonprofit organization.  This assistance may result in cost decreases to the municipalities and public schools due to sustainability gains or reduced consulting costs through the qualified nonprofit organization.

      The Department of Community Affairs is also expected to incur costs associated with administering the Sustainable New Jersey Fund.

 

Section:

Local Government

Analyst:

Abigail Stoyer

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).