Governor Murphy’s SFY 2025 detailed budget recommendations for the Department of Environmental Protection (DEP) total $491.4 million, a 31.3% reduction from the SFY 24 adjusted appropriation of $714.9. The reduction comes from cuts in Direct State Services from $301.3 million to $298.1 million, Grants in Aid from $12.9 million to $1.5 million, Capital Construction from $377.5 million to $172.4 million, Debt Service from $31.3 million to $27.6 million, and allocations from the Property Tax Relief Fund from $16.2 million to $12.2 million.
The SFY 2025 budget language recommends appropriations and conditions for various programs including forest resource management, parks management, and flood control. For more on the Governor’s overall budget proposal, please see our SFY 2025 Budget writeup.
Below is a review of DEP’s budget and impact on local governments.
Blue Acres Flood Remediation: The Blue Acres program is a voluntary buyout program that offers homeowners the option to sell their properties to the state at pre-flood values. The program aims to mitigate the impacts of climate change and help protect socially vulnerable residents by purchasing properties in flood-prone areas. Budget funding in SFY 2025 remains flat at $970,000.
The DEP prioritizes properties for acquisition based on several factors. These include the property's location in a mapped floodway or special flood hazard area, the extent of flood damage, whether it is insured, its potential for restoration, and the willingness of the property owner to sell. Properties located in areas of high social vulnerability are also given priority.
In SFY 2024, municipalities in Bergen, Middlesex, and Somerset counties received Blue Acres funding.
Green Acres: In the SFY 2025 proposed budget, funding for the Garden State Green Acres Fund is expected to remain at the same level as the previous fiscal year, with an allocation of $6.68 million. This budget indicates a recommended appropriation for the upcoming fiscal year, as funding for the Preserve New Jersey Green Acres Fund is typically provided through a mid-year supplemental appropriation specified by separate legislation.
As per the State Constitution, six percent of annual corporation business tax revenues are dedicated to various purposes, including open space, farmland, historic preservation, water programs, public and private site remediation, and underground storage tank programs. Within the total dedicated collections, the State Constitution specifically designates 78 percent for the Preserve New Jersey Fund, which is aimed at supporting open space, farmland, and historic preservation. The statutory framework for distributing the dedicated funds from the Preserve New Jersey Fund allocates 62 percent to the Green Acres Fund, 31 percent to the Farmland Preservation Fund, and seven percent to the Historic Preservation Fund.
Park Management: The SFY 2025 budget proposal includes a modest increase from $44.9 million for FY 2024 to $45.8 million, representing a 2% increase for park management.
Brownfields: Level funding of $3.5 million is proposed for the Brownfield Site Reimbursement Fund in the SFY 2025 budget. The Brownfield Remediation Program is allocated 6% of funding from the Corporate Business Tax (CBT). This allocation is through the provision of grants and loans to responsible parties. Additionally, a further 5% is designated for the remediation of hazardous substances discharge in cases where no responsible party is identified.
Water Monitoring and Resource Management: The proposal calls for level funding of $11.8 million for the Water Monitoring and Resource Management program. The DEP’s Water Monitoring and Resources Management is responsible for monitoring freshwater and marine surface water. This also includes creating standards and strategies for managing pollutants, harmful algal blooms, managing watershed, drinking water, and pollution control planning in compliance with federal laws.
Solid and Hazardous Waste Management: The budget proposal includes level funding of $5.7 million for the Solid and Hazardous Waste Management program. The DEP’s Solid and Hazardous Waste Management program offers grants to support local recycling initiatives under the Recycling Enhancement Act and oversees the regulation of solid and hazardous waste management. This includes permitting, inspections, and enforcement of standards for waste generation, storage, collection, transport, treatment, and disposal.
The DEP’s Solid and Hazardous Waste Management program also implements the Resource Conservation and Recovery Act of 1976, issues licenses for waste industry operators, and develops programs like Electronic Waste Recycling to meet recycling goals and reduce waste generation. DEP also regulates the solid waste industry to ensure competition and oversees industry mergers and financing.
Department Objective: The primary focus of the DEP is to safeguard public health, foster sustainable communities, and preserve the state's natural resources. The DEP comprises seven major Divisions, namely the Office of the Commissioner, Air Quality, Energy, and Materials Sustainability, Contaminated Site Remediation and Redevelopment Program, Climate and Flood Resilience, Natural and Historic Resources, Water Resources Management, and Watershed and Land Management.
These figures are based on the Governor’s proposal and may change based on public testimony, changes by the Legislature, and discussions with the Administration before its enactment by the end of June. The League will provide further updates as the budget process continues.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.