SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 3521

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 22, 2021

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3521, with committee amendments.

      As amended, the bill makes $15 million in federal funds available to the Economic Development Authority (EDA) and the New Jersey Council on the Arts (“council”) to award grants to arts and culture organizations who are in need of support as a result of the public health crisis.  Specifically, the bill makes available $7.5 million to the EDA for for-profit organizations and $7.5 million to the council for non-profit organizations.  The EDA and council may also use up to five percent of these funds to support administrative expenses.

      The bill also allows the EDA to transfer the uncommitted balance of these funds to certain other programs administered by the authority using federal COVID-19 response funding.  However, the EDA would be required to submit notice of the transfer to the Joint Budget Oversight Committee.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  restructure the bill such that it is not a supplemental appropriation, but rather makes funding available for the bill’s designated purpose;

      (2)  make $7.5 million in federal funding directly available to the council.  As introduced, the bill would have made these funds available to the EDA and required the authority to allocate such funding to the council;

      (3)  allow the EDA and council to use up to five percent of the federal funds to support administrative expenses incurred in the implementation of the bill;

      (4)  allow the EDA to transfer the uncommitted balance of federal funds to certain other programs administered by the authority using federal COVID-19 response funding, provided that the EDA submit notice to the Joint Budget Oversight Committee; and

      (5)  define the terms “arts and culture for-profit organization” and “performing arts or artist.”

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.