LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 5546
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 27, 2025
SUMMARY
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Synopsis: |
Concerns financial powers and responsibilities of Capital City Redevelopment Corporation. |
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Type of Impact: |
Potential expenditure increase and revenue decrease for Capital City Redevelopment Corporation. |
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Agencies Affected: |
Capital City Redevelopment Corporation. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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Potential State Expenditure Increase |
Indeterminate |
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Potential State Revenue Decrease |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the bill may result in State expenditure increases to the extent that the Capital City Redevelopment Corporation elects to issue increased grant and loan funding with the expanded authority provided by the bill.
· The bill may also result in decreased State revenue to the extent that the corporation determines a percentage or amount of recovery of funds less than the currently required 65 percent per project or program.
BILL DESCRIPTION
The bill authorizes the Capital City Redevelopment Corporation to issue loans and grants for projects that benefit the Capital City District. Current law allows to be included in the Capital City Redevelopment Loan and Grant Fund any monies repaid by persons pursuant to loan agreements funded by the fund and any income, increment, or interest derived from investment or reinvestment of monies deposited in the fund. The bill maintains those allowed sources but removes from inclusion a broader permission for any monies made available to the corporation from any source or sources for its purposes. Additionally, the bill removes the current statutory requirement that 65 percent of the funds be recovered through repayment.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill may result in State expenditure increases to the extent that the corporation elects to issue increased grant and loan funding with the expanded authority provided by the bill and decreased State revenue to the extent that the corporation determines a percentage or amount of recovery of funds less than the currently required 65 percent per project or program.
The bill expands the corporation’s general authority to issue grants and loans with funds other than those in the dedicated grant and loan fund. To the extent that the corporation issues increased grant and loan funding with such expanded authority, the bill will result in increased State expenditures. The OLS is unable to predict the amount of increased grant and loan funding that may be issued by the corporation as a result of the bill. The OLS notes that as of December 31, 2024, the corporation reports having a total of $12.86 million in available funds between its operating and project-specific accounts.
The bill also removes an existing requirement that at least 65 percent of monies appropriated to the fund is to be recovered and continue to be available for financing. The bill gives the corporation the ability to determine an appropriate amount of recovery and repayment per project or program. The OLS is unable to predict the scope of future corporation projects and programs and is unable to estimate the amount of recovery and repayment that the corporation may deem appropriate for such future projects and programs. The OLS is, therefore, unable to determine the expected decrease in State revenues as a result of the bill.
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Section: |
Local Government |
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Analyst: |
Senior Fiscal Analyst |
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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.).