New Jersey Assembly Bill A2273

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Reduces allowed diversion of funds from stormwater, water, and sewer purposes to municipal and county budgets; requires municipalities and counties to notify Division of Local Government Services of diversions.

Impact

If enacted, A2273 will necessitate a shift in how local governments manage their budgets and financial planning with respect to utility funds. By limiting the diversion of these funds, the bill aims to protect essential services provided by stormwater, water, and sewer authorities. This regulation is especially pertinent as it strives to promote sustainable management of water-related infrastructure and environmental stewardship at the local level, which may resonate positively with community and environmental advocates.

Summary

Assembly Bill A2273 seeks to amend existing regulations concerning the diversion of funds from local stormwater, water, and sewer utilities to municipal and county budgets. Specifically, the bill reduces the allowable amount that municipalities and counties can transfer from these utility sources to their budgets from five percent to three percent of the annual operating costs of the respective utilities. This change is intended to ensure that a greater proportion of utility funds remain within their designated purposes, thereby enhancing the financial integrity of local utility operations.

Contention

One notable point of contention surrounding A2273 is the pushback from certain local governments and fiscal policy advocates who argue that restricting budgetary flexibility can hamper local municipalities' ability to respond to pressing budgetary needs. Critics assert that in times of financial exigency, these transfers provided necessary resources for broader municipal services. Conversely, supporters of the bill contend that financial health among utilities should take precedence to ensure reliability in water and sewer services, thus framing the debate as one of fiscal responsibility versus emergency financial management.