SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 1223

STATE OF NEW JERSEY

DATED: JUNE 13, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1223.

      Senate Bill No. 1223 suspends for one year the debt ceiling established under P.L.1985, c.334, which limits to $600 million the aggregate principal amount of bonded indebtedness, including subordinated indebtedness, that the New Jersey Wastewater Treatment Trust may incur.

      This bill authorizes the Trust to incur bonded indebtedness in excess of the current debt ceiling in order to implement the Trust's Fiscal Year 1997 Financial Plan as approved by the Legislature pursuant to SCR No. 75 of 1996, and as embodied in companion legislation. Under the Fiscal Year 1997 Financial Plan, the Trust and the Department of Environmental Protection would make loans to local governments for the construction of eligible wastewater treatment system projects.

      The Legislature has suspended for one year periods the $600 million debt ceiling established under P.L.1985, c.334 to permit the Trust to issue bonds in order to implement the Fiscal Year 1994 Financial Plan, the Fiscal Year 1995 Financial Plan, and the Fiscal Year 1996 Financial Plan.

      As reported, this bill is identical to Assembly Bill No. 48 of 1996 (Bodine/Bark).

FISCAL IMPACT:

      This bill does not make an appropriation but suspends the debt ceiling for a fourth time to allow the Trust to issue bonds in order to implement the Fiscal Year 1997 Financial Plan.