SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 3511

STATE OF NEW JERSEY

DATED:  JUNE 26, 2024

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3511.

      This bill appropriates a total of $393,480,000 from the “New Jersey Debt Defeasance and Prevention Fund” for various capital projects.

Department of Environmental Protection

      The bill appropriates $70,000,000 to the Department of Environmental Protection for Liberty State Park, Capital Improvements, which would be used only for: the construction of athletic fields, active recreation, community center, railroad terminal, or community gardens, and improvements that directly support such facilities, including concessions, restrooms, and mobility within Liberty State Park; and Greenway planning, revitalization, and remediation.  According to the Budget in Brief, the groundbreaking for the Garden State Greenway project is expected to occur in Fiscal Year 2025.

Department of Law and Public Safety

      The bill appropriates $198,359,000 to the Department of Law and Public Safety to support three projects, including: (1) $120,480,000 to support the second and final installment of funding to support the balance of anticipated costs of a new State Police Training Center, for which an initial appropriation of $120,000,000 was provided from the fund under  P.L.2023, c.68; (2) $60,000,000 for the construction of a third facility for the Juvenile Justice Commission; and (3) $17,879,000 for the design and construction of a new State Police Southern Regional Laboratory.

Department of the Treasury

      The bill appropriates $38,721,000 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 in the Departments of Agriculture, Corrections, Health, Human Services, Military and Veterans’ Affairs, Juvenile Justice Commission, and the State Library.

Department of Military and Veterans’ Affairs

      The bill appropriates $21,000,000 to the Department of Military and Veterans’ Affairs to convert the New Jersey Veterans' Memorial Home-Menlo Park and the New Jersey Veterans' Memorial Home-Paramus into single occupancy rooms.  According to the Budget in Brief, the federal government will cover 65 percent of this project. 

Office of Information Technology

      The bill appropriates $65,400,000 to the Office of Information Technology for improvements and upgrades to the New Jersey State Enterprise Data Center and its power infrastructure.  According to the Executive, this project aims to replace the 35-year old electrical and mechanical systems that support the center.  The project is expected to be completed in Fiscal Year 2027.

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:

      This bill is not certified as requiring a fiscal note.