McGreevey’s FY2005 Budget keeps DEP Programs Intact

 

By Hugh M. Carola

 

Like people everywhere, New Jersey residents loathe taxes but when push comes to shove we recognize the need to pay for the governmental services we depend on. Where the environment is concerned, New Jerseyans strongly support measures to protect open space, monitor air & water quality, and provide for public access. That’s why voters in every county and in many towns have established open space trust funds; and that’s also why we continue to send a majority of environmentally minded leaders to Trenton and Washington. Without question, New Jersey is an example of what an environmentally aware state should be.

 

 Every year at this time, the Governor presents his or her proposed budget to the State Legislature and tries to balance funding needs with revenue. Fortunately, Governor McGreevey’s Fiscal 2005 budget does so without cutting the budget of the Department of Environmental Protection (DEP). The budget reinforces vital programs implemented over the past two years, including clean water protections and clean air initiatives. It also makes polluters pay and holds them accountable for the costs of protecting the health and safety of our people and environment.

 

The proposal also makes critical new investments and provides resources for vital programs such as the Phase Two stormwater regulations, smart growth initiatives, and environmental enforcement. The Fiscal 2005 Budget includes funding for the following key programs:

 

* $20 million to strengthen site cleanup and redevelopment programs.

* $12.3 million shared with DOT for snow removal and tire pile cleanup.

* $6 million in additional funds to help municipalities implement necessary stormwater improvements under the new Phase 2 Regulations.

* $4 million to address capital improvement and maintenance backlogs in the state park system.

* $800,000 for enhanced water monitoring.

 

         Coming up with the means to pay for those new programs as well as keeping existing ones funded is always a challenge when income tax increases and increased fees for the general public are not an option. Some key (& creative) revenue proposals in Governor McGreevey’s budget include:

 

* $329 million generated by delaying the phase out of certain Corporate Business Tax (CBT) exemptions. This action makes corporations pay their fair share, with a portion of this CBT funding dedicated to environmental programs.

* $24 million generated through a new “McMansion” tax on home purchases costing more than $1 million. The tax, to be paid by the homebuyer, is 1% of the cost of the property.

* $20 million generated through an increase in the Hazardous Discharge Site Cleanup Fund (Spill Fund). This will offset a current shortfall in the program, as well as providing General Fund budget relief. By providing more money for the site remediation program, whose case managers also are responsible for issues that affect natural resource damage (NRD) claims, this will help bolster DEP’s NRD initiatives.

* $12.3 million generated through a tax on tires to fund both DOT snow removal and DEP grants to cleanup tire piles around the state.

* $11 million generated through a new Hazardous Waste Disposal tax, of which approximately half of the money would be paid by out-of-state entities.

* $6 million generated through a new Air Toxics tax, capped at a maximum of $500,000 per facility.

 

It’s expected that these new revenue sources will provide an added environmental benefit by providing incentives for facilities to reduce their pollution levels. (Less pollution equals less tax.) For those that don’t, the budget rules will allow the DEP to use fees and fines that exceed budgeted targets to support the many environmental programs that provide the people of New Jersey with safe, healthy and attractive communities.

We at Hackensack Riverkeeper applaud Governor McGreevey’s strong commitment to our environment and we applaud even louder his willingness to place the full financial strength of the state behind making New Jersey a cleaner, greener and healthier place to live.