New Jersey Senate Bill S368

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

"Flood Control, Mitigation, and Prevention Bond Act"; authorizes bonds for up to $2 billion and appropriates $5,000.

Impact

If enacted, SB 368 would amend the current funding structure for flood management projects in New Jersey. The Commissioner of Environmental Protection will be tasked with establishing procedures for reviewing and approving eligibility for projects seeking these funds. Recognizing prior funding inadequacies, the bill outlines that no more than 5% of any grant or loan may go towards administrative costs, ensuring that the bulk of the funding is dedicated to on-the-ground flood management solutions. This dedicated funding approach aims to bolster local government capacities and support for urgent flood-related projects.

Summary

Senate Bill 368, known as the 'Flood Control, Mitigation, and Prevention Bond Act', proposes the issuance of up to $2 billion in state general obligation bonds aimed at funding flood control, mitigation, and prevention projects across New Jersey. The funding can be allocated to state projects, grants, and low-interest loans directed towards local governments, with an interest rate capped at 2% for loans. This bill stems from significant flooding disasters that New Jersey faced in the years 2009, 2010, and 2011, which resulted in extensive property damage and economic hardships statewide. The legislative intent is to enhance the state’s ability to manage flood risks and protect communities from future events.

Contention

Throughout discussions surrounding SB 368, there have been differing opinions on the financial implications of such a substantial bond issuance. Supporters argue that it is crucial for enhancing public safety and promoting economic recovery in flood-stricken areas, while critics may express concerns regarding long-term debt obligations that could affect the state’s fiscal health. The bill mandates that the proposal be submitted to the public for approval during a general election, which highlights the importance of public sentiment and transparency in the fiscal commitments undertaken by the state.