ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1099

STATE OF NEW JERSEY

DATED: JUNE 20, 1996

      The Assembly Appropriations Committee reports favorably an Assembly Committee Substitute for Assembly No. 1099 (ACS).

      This Assembly Committee Substitute for Assembly No. 1099 (ACS) would, upon approval of the voters of the State of New Jersey, authorize the State of New Jersey to issue up to $300 million in general obligation bonds. Of this amount, $185 million would be used to provide financing, in whole or in part, for the construction of subaqueous pits and a containment facility or facilities for the disposal of contaminated dredged materials from the Port of New York-New Jersey, to finance projects related to the decontamination of these dredged materials, and to dredge the Kill Van Kull, the Arthur Kill and other navigation channels located in the New Jersey/New York port region. Of the remaining $115 million, $20 million would be used for the dredging of navigation channels not located in the port region; $70 million would be used to clean up hazardous discharge sites and contaminated water supplies; $5 million would be used for the restoration of lakes in New Jersey; and $20 million would be used for financing economic development sites in the Delaware River and Bay Region.

      The cost of an authorized project includes those items necessary or useful to performing the authorized project as well as those professional and financial costs incurred in issuing the bonds. Other allowable costs include organizational, administrative, and other work and services, including salaries, supplies, equipment, and materials deemed necessary; however, no bond monies could be used for administrative expenses incurred in connection with the clean up of hazardous discharge sites and contaminated water supplies.

FISCAL IMPACT:

      After voter approval, this legislation will authorize $300 million in general obligation bonds. Of this amount, $185 million is for dredging the Port of New York-New Jersey area, and financing subaqueous pits. Of the remaining $115 million, $20 million is for dredging channels not in the port area; $70 million for cleanup of hazardous discharge sites; $5 million for lake restoration; and $20 million for economic development sites in the Delaware River and Bay region.

      The bonds issued under the act will be repaid from the General Fund of the State. The bonds may be issued for terms of up to 35 years and will be paid back over that time with that amount of interest as may be determined upon their sale. The bonds issued will be backed by the full faith and credit of the State of New Jersey.