SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5778

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 5778.

      As reported, this bill would direct the Garden State Preservation Trust (GSPT) to perform, or cause to be performed, a comprehensive audit of the programs and accounts overseen by the GSPT, including the Green Acres program, Blue Acres program, farmland preservation program, and historic property preservation program.  The audit would be required to provide a formal accounting of the programs overseen by the GSPT, identify any inefficiencies in the programs, and recommend a reallocation of funds where appropriate.

     The bill would also amend existing law to authorize local governments and nonprofit organizations that receive constitutionally dedicated corporation business tax (CBT) revenues for farmland preservation purposes to use a certain portion of the funds for administrative expenses.  Specifically, the bill would authorize those entities to use up to three percent of the value of the development easement or fee simple title, as applicable, of the property for administrative expenses.

     Finally, the bill would provide that any moneys that have been allocated to a local government from the “Preserve New Jersey Farmland Preservation Fund,” which are not specifically committed to an active transaction 18 months after the date on which they were allocated, would be required to be returned to the fund.

      As reported by the committee, Assembly Bill No. 5778 is identical to Senate Bill No. 5007, which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that there will be a State expenditure increase of up to $150,000 in the first year for the Garden State Preservation Trust to conduct, or cause to be conducted, an audit of the State’s land preservation programs.  The bill requires the audit to identify program inefficiencies and recommend a fund reallocation when appropriate.  The OLS finds that there may be State savings in subsequent years from program inefficiencies being addressed.

      The OLS determines that the bill’s provisions would have an indeterminate annual impact on local expenditures.  Specifically, authorizing local entities to utilize up to three percent of the value of the development easement or fee simple title for administrative expenses would result in expenditure increases, while setting a time limit of 18 months to spend allocated funds could in certain instances result in expenditure decreases.