LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 985

STATE OF NEW JERSEY

DATED: JUNE 24, 1996

      Senate Bill No. 985 (1R) of 1996 requires that local governments be compensated at a per diem rate established by law when State inmates are housed in local governmental facilities. The bill further provides that a local governmental unit must receive reasonable compensation whenever the State exercises emergency powers pursuant to P.L.1969, c.22 (C.30:4-91.2), P.L.1994, c.12 or P.L.1996, c.9, that entail the use and operation of a local governmental facility in addition to the placement of State inmates at that local governmental facility.

      The bill establishes a minimum rate that must be paid by the State when it takes over the operation of a facility previously leased by the State from a local governmental unit pursuant to the State's statutory emergency powers concerning the housing of inmates. For any State use of the local governmental facility on and after January 1, 1995, this minimum rate is set at 75 percent of the lease or use rate agreed upon by the State and the local governmental unit prior to the State's exercise of its emergency powers.

      The State currently houses more than 4,000 State sentenced inmates in county jail facilities at a per diem rate of $58.50 per day. In addition, the State leases two county jail facilities from Hudson County to house 632 State sentenced inmates. During FY 1994, the State entered into a lease agreement with Hudson County to use vacated jail facilities to house these inmates at a rate of $6 million per year. The State is currently negotiating with the county for a revised lease rate. Under the bill, the State would be required to reimburse Hudson County 75 percent of the original $6 million paid for the space, or $4.5 million annually.

      The legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.