SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4472

STATE OF NEW JERSEY

DATED:  JUNE 9, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4472.

      As reported, this bill amends the local bond law to exempt a local government from appropriating an amount equal to five percent of the amount of obligations for local bond ordinances involving hazard mitigation and resilience projects.

      The bill also exempts a local government from applying to the local finance board concerning the maturity and amount of annual installment payments related to the financing of local bond ordinances involving hazard mitigation and resilience projects.

      The bill also makes technical corrections to existing law.

FISCAL IMPACT:

      The Office of Legislative Services concludes that the bill may result in an increase in costs to some counties and municipalities because of higher debt financing costs corresponding to the duration of bonds they may issue. This bill removes the five percent down payment requirement for the issuance of bonds by counties and municipalities for hazard mitigation and resilience projects.

      Counties and municipalities that choose to not to make any down payment on the amount of debt authorized will pay higher interest costs over the term of the bonds, as they are financing 100 percent of the capital purpose, not some lower percent. These higher costs will vary among counties and municipalities, depending on the amount of debt authorized and issued, interest rates, the length of the bond term, and other factors.