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Committee advances bill to curb transfers from stormwater, water and sewer funds amid governance concerns
Summary
The State and Local Government Committee advanced A3456 to second reference. Advocates for municipal utilities urged more analysis, saying the bill blurs differences between authorities and utility enterprise funds and could require comprehensive fiscal planning.
The Assembly State and Local Government Committee advanced A3456 on a second reference after members said they want more time to examine the proposal that would reduce the amount counties and municipalities may divert from stormwater, water and sewer utilities and authorities to general budgets.
Supporters of keeping rate-funded revenue in utility accounts argued the bill aims to preserve funds for system maintenance; opponents said the measure needs technical fixes to avoid disrupting existing governance and accounting practices.
Ryan Berger, executive director of the Drinking Water Coalition of New Jersey, testified that his coalition — which represents municipal water utilities and authorities — opposed the bill in its current form and was seeking amendments. "We are opposed at this time. We are also currently seeking amendments," Berger said, adding that the bill "does not appear to clearly align and sometimes confuses the operations and governance of an authority and a utility." He told the committee that authorities typically have independent governance, separate EINs and different financial autonomy than utility enterprise funds governed directly by a municipality.
Peggy Gallos, representing the Association of Environmental Authorities, said her group generally supports reducing diversions of funds intended for stormwater, water and wastewater purposes but asked for more discussion to understand the bill's implications. "We love the idea of something that does not...reduce the amount of funds that can be diverted," she told the committee, and asked to be engaged in follow-up talks to avoid unintended consequences for municipal and regional operations.
Committee members said A3456 will return for further consideration. A committee member noted the measure would be taken up in a second reference so legislators and affected parties could "drill into these details" before final action.
No formal vote tally on final passage was recorded in the committee transcript; the chair announced the item would go to second reference for further review.
