Approp.
An Act concerning the “New Jersey Debt Defeasance and Prevention Fund” and making appropriations.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. There is appropriated from the “New Jersey Debt Defeasance and Prevention Fund” $222,000,000 to the Department of Corrections for the design and construction of a new facility to replace the Edna Mahan Correctional Facility for Women, subject to the approval of the Director of the Division of Budget and Accounting.
2. There is appropriated from the "New Jersey Debt Defeasance and Prevention Fund" $25,128,000 to the Department of the Treasury for the purpose of funding capital construction projects that the New Jersey Commission on Capital Budgeting and Planning recommends be undertaken or continued, subject to the approval of the Director of the Division of Budget and Accounting.
3. a. Notwithstanding the provisions of section 3 of P.L.2021, c.125 or any other law to the contrary, there is appropriated from the "New Jersey Debt Defeasance and Prevention Fund" such amounts remaining therein after the appropriations required pursuant to sections 1 and 2 of this act, as determined by the State Treasurer, including any amounts previously deposited therein, for the purpose of retiring and defeasing debts of the State of New Jersey, and the costs thereof, in such manner and at such times as the State Treasurer shall direct. If money is used for debt retirement or defeasance, the State Treasurer shall submit to the Joint Budget Oversight Committee a report describing the manner in which debt retirement and defeasance has been accomplished, including a description of the amounts to be saved and an attestation that describes the manner in which the retired debt benefits the State.
b. Notwithstanding the provisions of section 4 of P.L.2021, c.125 or any other law to the contrary, there is appropriated from the "New Jersey Debt Defeasance and Prevention Fund" such amounts remaining therein after the appropriations required pursuant to sections 1 and 2 of this act, as determined by the State Treasurer, including any amounts previously deposited therein, for the purpose of funding capital construction projects for which State debt is already authorized by law, or for which funding would have been derived from future State bond issuances, thereby constituting debt avoidance, subject to the approval of the Director of the Division of Budget and Accounting. The State Treasurer shall submit a list of proposed capital projects to the Joint Budget Oversight Committee for approval. The Joint Budget Oversight Committee shall meet not less frequently than quarterly, with the first quarter of the fiscal year beginning on July 1 and ending on September 30, to consider lists of proposed capital projects submitted by the State Treasurer. The Joint Budget Oversight Committee shall meet during the third month of the first quarter of the fiscal year. In the event that the Joint Budget Oversight Committee fails to meet during a given quarter, any recommendation submitted to the Joint Budget Oversight Committee more than 45 days prior to the last day of the quarter shall be deemed approved.
4. This act shall take effect immediately.
STATEMENT
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.
Appropriates $247,128,000 from “New Jersey Debt Defeasance and Prevention Fund”; establishes process for authorizing future appropriations for debt defeasance and capital projects.