Bill > A968

Introduced Session

This bill would amend the "Local Authorities Fiscal Control Law" to remove the ability of municipalities and counties to divert up to five percent of funds from certain sewerage authorities and municipal and county utilities authorities for other purposes. The vast majority of New Jersey's drinking water and wastewater systems are municipal utilities and utilities authorities governed by elected and appointed officials. These publicly-owned systems determine their own rates and service, are closer to their individual communities, and are free of the requirement to ensure a profit margin for their shareholders. Despite these benefits, many of these systems are small and lack the revenues to make necessary investments, while additionally facing public pressure to keep rates low. A major obstacle to more robust funding of water and sewer infrastructure is a provision in the Local Authorities Fiscal Control Law that allows municipalities and counties to divert up to five percent of water and sewer funds for other purposes. According to the Association of Environmental Authorities, in one set of 100 New Jersey municipal and authority budgets, approximately $80 million had been transferred in a three-year period. That translates into $80 million that was not invested in improving infrastructure, and acts as a type of tax on ratepayers to subsidize local budgets.

AI Summary

Committee Categories

John DiMaio (R)*, 

Introduced, Referred to Assembly Environment and Solid Waste Committee (on 01/11/2022)

Official Document