ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5801

STATE OF NEW JERSEY

DATED:  JUNE 26, 2025

      The Assembly Budget Committee reports favorably Assembly Bill No. 5801.

      This bill appropriates $247,128,000 from the “New Jersey Debt Defeasance and Prevention Fund” for various capital projects.

Department of Corrections

      The bill appropriates $222,000,000 to the Department of Corrections for the design and construction of a new correctional facility to replace the Edna Mahan Correctional Facility for Women.  The construction of the new facility will be located in Chesterfield Township (Burlington County).  P.L.2022, c.68 had previously appropriated $90.0 million from the same fund for the development of a plan to replace the Edna Mahan Correctional Facility for Women.  News reports indicate that the construction of the new facility is estimated to cost $312.0 million.

Department of the Treasury

      The bill appropriates $25,128,000 to the Department of the Treasury for capital construction projects recommended by the New Jersey Commission on Capital Budgeting and Planning.  According to the Executive, this funding is expected to support projects ensuring the safety and functionality of State facilities, such as psychiatric hospitals, correctional institutions, and developmental centers.

Future Debt Defeasance and Prevention Fund Appropriations

      The bill also authorizes balances remaining in the fund, including amounts previously credited to the fund, to be appropriated for the purpose of retiring and defeasing State debt and funding capital projects on a pay-as-you-go basis rather than issuing additional State debt.

      The bill establishes a process by which the Executive and Legislative branches of State government will determine future appropriations from the fund for capital projects.  The bill requires the Joint Budget Oversight Committee (JBOC) to meet at least once each calendar quarter to consider appropriations for capital projects on lists provided by the State Treasurer.  JBOC may appropriate funding for all, some, or none of the projects recommended by the State Treasurer.  If JBOC fails to meet during a given calendar quarter, any recommendation submitted to JBOC more than 45 days prior to the last day of the calendar quarter is deemed approved.

FISCAL IMPACT:

      Fiscal information is not available at this time.