STATE OF NEW JERSEY 212th LEGISLATURE.DOC

1 ASSEMBLY, No 2786 STATE OF NEW JERSEY 212th LEGISLATURE INTRODUCED MARCH 6, 2006 2Sponsored by: 3Assemblyman LOUIS D GREENWALD 4District (Camden) 9SYNOPSIS 10 Authorizes the issuance of $2,705,000,000 in general obligation bonds to 11finance the construction and renovation of higher education facilities; 12appropriates $5,000 13 14CURRENT VERSION OF TEXT 15 As introduced 16 A2786 GREENWALD 1AN ACT authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $2,705,000,000 for the purpose of the construction, reconstruction, development, extension, improvement and equipment of classrooms, academic buildings, libraries, computer facilities, and other higher education buildings at New Jersey's public and independent institutions of higher education; authorizing the issuance of refunding bonds; providing the ways and means to pay and discharge the principal of and interest on 10 the bonds; providing for the submission of this act to the people 11 at a general election; and making an appropriation therefor 12 13 BE IT ENACTED by the Senate and General Assembly of the 14State of New Jersey: 15 16 This act shall be known and may be cited as the 17“Affordability, College Capacity, and Economic and Student 18Success (ACCESS) Bond Act of 2006.” 19 20 The Legislature finds and declares that: 21 a New Jersey’s economic competitiveness and prosperity are 22directly related to the quality and capacity of its colleges and 23universities Higher education is the foundation of this State’s 24economic well-being as well as being critical in the realization of 25individual success 26 b New Jersey ranks eighth among states in the percentage of 27high school graduates that go directly from high school to college, 28and it ranks fifth in the percentage of its population with 29baccalaureate degrees or higher Although these statistics are 30laudable, in contrast the State also has the sixth highest 31outmigration rate of baccalaureate-seeking students in the nation 32The net migration - the difference between the number of students 33leaving the State and the number entering to attend college - is the 34highest in the nation 35 c Population growth projections indicate that over the next eight 36to ten years New Jersey will be a high-growth State in terms of the 37population of 18 to 24 year-olds This translates into a total 38undergraduate and graduate enrollment of approximately 54,000 39students by 2010 40 d The State has deferred investment in its system of higher 41education There has not been a voter-approved general obligation 42bond issue dedicated to the higher education infrastructure since 431988 Higher education institutions in this State, therefore, are 44entirely unprepared to accommodate this tremendous growth in 45student population 46 e A significant percentage of this growth will occur in southern 47New Jersey According to census data, New Jersey’s population 48grew by 14% between 1980 and 2000 The population in the eight A2786 GREENWALD 3 1southernmost counties – Atlantic, Burlington, Camden, Cape May, 2Cumberland, Gloucester, Ocean and Salem – grew by 22% These 3eight counties constitute half of the State’s landmass and include 427% of its population, yet only 12.5% of the undergraduate seats at 5the four-year institutions of higher education in this State are 6located in those counties f Increased investment in four-year institutions of higher 8education located in the eight southernmost counties of the State is 9imperative to adequately address population trends and to provide 10increased higher education opportunities to our students in southern 11New Jersey 12 g The convergence of economic competitiveness, growing 13workforce demands, and demographic trends poses critical policy 14decisions for New Jersey Increasing higher education capacity – to 15educate the growing number of recent high school graduates, to 16provide ongoing education to upgrade the skills of the current 17workforce, to extend educational access to underrepresented groups, 18and to provide baccalaureate and graduate programs in underserved 19areas of the State – is an opportunity and an obligation deserving 20immediate Statewide attention and resources Such an investment is 21vital to New Jersey’s prosperity in the knowledge-based, global 22economy 23 24 As used in this act unless the context indicates a different 25meaning or intent: 26 "Bonds" mean the bonds authorized to be issued, or issued, under 27this act; 28 "Commission" means the New Jersey Commission on Higher 29Education established pursuant to section 13 of P.L.1994, c.48 30(C.18A:3B-13); 31 "Construct" and "construction" mean, in addition to the usual 32meaning thereof, the planning, erecting, purchasing, improving, 33developing, constructing, reconstructing, extending, rehabilitating, 34renovating, upgrading, demolishing, and equipping of facilities at 35public and independent institutions of higher education; 36 "Cost" means the expenses incurred in connection with: the 37acquisition by purchase, lease, or otherwise, the development, and 38the construction of any project authorized by this act; the 39acquisition by purchase, lease, or otherwise, and the development of 40any real or personal property for use in connection with a project 41authorized by this act, including any rights or interests therein; the 42execution of any agreements and franchises deemed by the New 43Jersey Commission on Higher Education to be necessary or useful 44and convenient in connection with any project; the procurement of 45engineering, inspection, planning, legal, financial, or other 46professional services, including the services of a bond registrar or 47an authenticating agent; the issuance of bonds, or any interest or 48discount thereon; the administrative, organizational, operating, or 49other expenses incident to the financing and completing of any A2786 GREENWALD 1project authorized by this act; the establishment of a reserve fund or 2funds for working capital, operating, maintenance, or replacement 3expenses and for the payment or security of principal or interest on 4bonds, as the Director of the Division of Budget and Accounting in 5the Department of the Treasury may determine; and reimbursement 6to any fund of the State of moneys which may have been transferred 7or advanced therefrom to any fund created by this act, or of any 8moneys which may have been expended therefrom for, or in 9connection with, any project authorized by this act; 10 "Government securities" means any bonds or other obligations 11which as to principal and interest constitute direct obligations of, or 12are unconditionally guaranteed by, the United States of America, 13including obligations of any federal agency, to the extent those 14obligations are unconditionally guaranteed by the United States of 15America, and any certificates or any other evidences of an 16ownership interest in those obligations of, or unconditionally 17guaranteed by, the United States of America or in specified portions 18which may consist of the principal of, or the interest on, those 19obligations; 20 "Higher education buildings" means buildings, structures and 21facilities required for the operation of public and independent 22institutions of higher education; 23 "Independent institutions of higher education" means 24independent colleges or universities incorporated and located in 25New Jersey, which by virtue of law or character or license, are 26nonprofit educational institutions authorized to grant academic 27degrees and which provide a level of education which is equivalent 28to the education provided by the State's public institutions of higher 29education as attested by the receipt of and continuation of regional 30accreditation by the Middle States Association of Colleges and 31Schools, and which are eligible to receive State aid under the 32provisions of the Constitution of the United States of America and 33the Constitution of the State of New Jersey, but does not include 34any educational institution dedicated primarily to the education or 35training of ministers, priests, rabbis, or other professional persons in 36the field of religion; 37 "Project" means the establishment and construction of higher 38education buildings and the expansion and construction of 39additional facilities at, and the acquisition of additional and 40upgraded equipment for, existing higher education buildings; and, 41 "Public institutions of higher education" means Rutgers, The 42State University, the State colleges and universities established 43pursuant to chapter 64 of Title 18A of the New Jersey Statutes, the 44New Jersey Institute of Technology, the University of Medicine and 45Dentistry of New Jersey, the county colleges, and any other public 46university or college now or hereinafter established or authorized by 47law A2786 GREENWALD The New Jersey Commission on Higher Education shall adopt 2pursuant to the "Administrative Procedure Act," P.L.1968 c.410 3(C.52:14B-1 et seq.), rules and regulations necessary to implement 4the provisions of section of this act Bonds of the State of New Jersey are authorized to be issued 7in the aggregate principal amount of $2,705,000,000 for the 8following purposes: a $900,000,000 for the construction of higher education 10buildings at the State colleges and universities established pursuant 11to chapter 64 of Title 18A of the New Jersey Statutes to be allocated 12as follows: 13 (1) $84,100,000 to The College of New Jersey; 14 (2) $123,400,000 to Kean University; 15 (3) $154,600,000 to Montclair State University; 16 (4) $74,500,000 to New Jersey City University; 17 (5) $63,300,000 to Ramapo College of New Jersey; 18 (6) $125,100,000 to The Richard Stockton College of New 19Jersey; 20 (7) $149,100,000 to Rowan University; 21 (8) $9,000,000 to Thomas A Edison State College; and 22 (9) $116,900,000 to William Paterson University of New Jersey 23 b $594,000,000 for the construction of higher education 24buildings at Rutgers, The State University to be allocated as 25follows: 26 (1) $112,900,000 to the Rutgers-Camden campus; 27 (2) $106,900,000 to the Rutgers-Newark campus; and 28 (3) $374,200,000 to the Rutgers-New Brunswick/Piscataway 29campus 30 c $308,000,000 for the construction of higher education 31buildings at the University of Medicine and Dentistry of New Jersey 32to be allocated as follows: 33 (1) $15,400,000 to the Robert Wood Johnson Medical School, 34Camden campus; 35 (2) $156,600,000 to the Newark campus; 36 (3) $67,500,000 to the Robert Wood Johnson Medical School, 37New Brunswick/Piscataway campus; and 38 (4) $68,500,000 to the School of Osteopathic Medicine, 39Stratford campus 40 d $198,000,000 for the construction of higher education 41buildings at the New Jersey Institute of Technology, of which 42amount a minimum of 10% shall be for projects in the eight 43southernmost counties of the State, including Atlantic, Burlington, 44Cape May, Camden, Cumberland, Gloucester, Ocean, and Salem 45counties 46 e $530,000,000 for the construction of higher education 47buildings at the county colleges to be allocated as follows: 48 (1) $22,900,000 to Atlantic Cape Community College; 49 (2) $44,800,000 to Bergen Community College; A2786 GREENWALD (3) $40,600,000 to Brookdale Community College; (4) $25,800,000 to Burlington County College; (5) $45,600,000 to Camden County College; (6) $28,700,000 to County College of Morris; (7) $14,700,000 to Cumberland County College; (8) $40,100,000 to Essex County College; (9) $22,200,000 to Gloucester County College; (10) $25,400,000 to Hudson County Community College; (11) $31,300,000 to Mercer County Community College; 10 (12) $40,100,000 to Middlesex County College; 11 (13) $28,300,000 to Ocean County College; 12 (14) $24,100,000 to Passaic County Community College; 13 (15) $21,600,000 to Raritan Valley Community College; 14 (16) $10,200,000 to Salem Community College; 15 (17) $14,500,000 to Sussex County Community College; 16 (18) $39,100,000 to Union County College; and 17 (19) $10,000,000 to Warren County Community College 18 f $175,000,000 for the construction of higher education 19buildings at the independent institutions of higher education, other 20than an independent institution having a total endowment of more 21than $1,000,000,000, to be allocated as follows: 22 (1) $9,600,000 to Bloomfield College; 23 (2) $9,000,000 to Caldwell College; 24 (3) $10,000,000 to Centenary College; 25 (4) $8,100,000 to College of Saint Elizabeth; 26 (5) $11,000,000 to Drew University; 27 (6) $24,500,000 to Fairleigh Dickinson University; 28 (7) $8,200,000 to Felician College; 29 (8) $10,000,000 to Georgian Court College; 30 (9) $18,500,000 to Monmouth University; 31 (10)$16,500,000 to Rider University; 32 (11) $10,500,000 to Saint Peter’s College; 33 (12)$25,500,000 to Seton Hall University; 34 (13)$13,100,000 to Stevens Institute of Technology; and 35 (14)$500,000 to be distributed by the commission 36 g For any project approved by the commission which is 37financed by bond funds set forth in subsections a through e of this 38section, the public institution of higher education may provide 39funds in support of such project which amount shall be established 40by the act appropriating bond funds therefor 41 h For any project approved by the commission which is 42financed by bond funds set forth in subsection f of this section, 43each independent institution of higher education shall provide funds 44in support of such project or projects in an amount equal to the 45aggregate amount of bond funds allocated to the project or projects 46 47 The bonds authorized under this act shall be serial bonds, 48term bonds, or a combination thereof, and shall be known as 49"Affordability, College Capacity, and Economic and Student A2786 GREENWALD 1Success (ACCESS) Bonds." They shall be issued from time to time 2as the issuing officials herein named shall determine and may be 3issued in coupon form, fully-registered form or book-entry form 4The bonds may be subject to redemption prior to maturity and shall 5mature and be paid not later than 35 years from the respective dates 6of their issuance The Governor, the State Treasurer, and the Director of the 9Division of Budget and Accounting in the Department of the 10Treasury, or any two of these officials, herein referred to as "the 11issuing officials," are authorized to carry out the provisions of this 12act relating to the issuance of bonds, and shall determine all matters 13in connection therewith, subject to the provisions of this act If an 14issuing official is absent from the State or incapable of acting for 15any reason, the powers and duties of that issuing official shall be 16exercised and performed by the person authorized by law to act in 17an official capacity in the place of that issuing official 18 19 Bonds issued in accordance with the provisions of this act 20shall be a direct obligation of the State of New Jersey, and the faith 21and credit of the State are pledged for the payment of the interest 22and redemption premium thereon, if any, when due, and for the 23payment of the principal thereof at maturity or earlier redemption 24date The principal of and interest on the bonds shall be exempt 25from taxation by the State or by any county, municipality or other 26taxing district of the State 27 28 The bonds shall be signed in the name of the State by means 29of the manual or facsimile signature of the Governor under the 30Great Seal of the State, which seal may be by facsimile or by way 31of any other form of reproduction on the bonds, and attested by the 32manual or facsimile signature of the Secretary of State, or an 33Assistant Secretary of State, and shall be countersigned by the 34facsimile signature of the Director of the Division of Budget and 35Accounting in the Department of the Treasury and may be manually 36authenticated by an authenticating agent or bond registrar, as the 37issuing official shall determine Interest coupons, if any, attached to 38the bonds shall be signed by the facsimile signature of the Director 39of the Division of Budget and Accounting in the Department of the 40Treasury The bonds may be issued notwithstanding that an official 41signing them or whose manual or facsimile signature appears on the 42bonds or coupons has ceased to hold office at the time of issuance, 43or at the time of the delivery of the bonds to the purchaser thereof 44 45 10 a The bonds shall recite that they are issued for the 46purposes set forth in section of this act, that they are issued 47pursuant to this act, that this act was submitted to the people of the 48State at the general election held in the month of November, 2006, 49and that this act was approved by a majority of the legally qualified A2786 GREENWALD 1voters of the State voting thereon at the election This recital shall 2be conclusive evidence of the authority of the State to issue the 3bonds and their validity Any bonds containing this recital shall, in 4any suit, action or proceeding involving their validity, be 5conclusively deemed to be fully authorized by this act and to have 6been issued, sold, executed and delivered in conformity herewith 7and with all other provisions of laws applicable hereto, and shall be 8incontestable for any cause b The bonds shall be issued in those denominations and in the 10form or forms, whether coupon, fully-registered or book-entry, and 11with or without provisions for interchangeability thereof, as may be 12determined by the issuing officials 13 14 11 When the bonds are issued from time to time, the bonds of 15each issue shall constitute a separate series to be designated by the 16issuing officials Each series of bonds shall bear such rate or rates 17of interest as may be determined by the issuing officials, which 18interest shall be payable semiannually; except that the first and last 19interest periods may be longer or shorter, in order that intervening 20semiannual payments may be at convenient dates 21 22 12 The bonds shall be issued and sold at the price or prices and 23under the terms, conditions and regulations as the issuing officials 24may prescribe, after notice of the sale, published at least once in at 25least three newspapers published in this State, and at least once in a 26publication carrying municipal bond notices and devoted primarily 27to financial news, published in this State or in the city of New York, 28the first notice to appear at least five days prior to the day of 29bidding The notice of sale may contain a provision to the effect 30that any bid in pursuance thereof may be rejected In the event of 31rejection or failure to receive any acceptable bid, the issuing 32officials, at any time within 60 days from the date of the advertised 33sale, may sell the bonds at a private sale at such price or prices 34under the terms and conditions as the issuing officials may 35prescribe The issuing officials may sell all or part of the bonds of 36any series as issued to any State fund or to the federal government 37or any agency thereof, at a private sale, without advertisement 38 39 13 Until permanent bonds are prepared, the issuing officials 40may issue temporary bonds in the form and with those privileges as 41to their registration and exchange for permanent bonds as may be 42determined by the issuing officials 43 44 14 The proceeds from the sale of bonds shall be paid to the 45State Treasurer and be held by the State Treasurer in a separate 46fund, and be deposited in such depositories as may be selected by 47the State Treasurer to the credit of the fund, which fund shall be 48known as the "Affordability, College Capacity, and Economic and 49Student Success (ACCESS) Fund." A2786 GREENWALD 15 a The moneys in the "Affordability, College Capacity, and 3Economic and Student Success (ACCESS) Fund" are specifically 4dedicated and shall be applied to the cost of the purposes set forth 5in section of this act However, no moneys in the fund shall be 6expended for those purposes, except as otherwise authorized by this 7act, without the specific appropriation thereof by the Legislature, 8but bonds may be issued as herein provided, notwithstanding that 9the Legislature shall not have then adopted an act making a specific 10appropriation of any of the moneys Any act appropriating moneys 11from the "Affordability, College Capacity, and Economic and 12Student Success (ACCESS) Fund" shall identify the project to be 13funded by the moneys 14 b At any time prior to the issuance and sale of bonds under this 15act, the State Treasurer is authorized to transfer from any available 16moneys in any fund of the treasury of the State to the credit of the 17"Affordability, College Capacity, and Economic and Student 18Success (ACCESS) Fund" those sums as the State Treasurer may 19deem necessary The sums so transferred shall be returned to the 20same fund of the treasury of the State by the State Treasurer from 21the proceeds of the sale of the first issue of bonds 22 c Pending their application to the purposes provided in this act, 23the moneys in the "Affordability, College Capacity, and Economic 24and Student Success (ACCESS) Fund" may be invested and 25reinvested as are other trust funds in the custody of the State 26Treasurer, in the manner provided by law Net earnings received 27from the investment or deposit of moneys in the "Affordability, 28College Capacity, and Economic and Student Success (ACCESS) 29Fund" shall be paid into the General Fund 30 31 16 If any coupon bond, coupon or registered bond is lost, 32mutilated or destroyed, a new bond or coupon shall be executed and 33delivered of like tenor, in substitution for the lost, mutilated or 34destroyed bond or coupon, upon the owner furnishing to the issuing 35officials evidence satisfactory to them of the loss, mutilation or 36destruction of the bond or coupon, the ownership thereof, and 37security, indemnity and reimbursement for expenses connected 38therewith, as the issuing officials may require 39 40 17 The accrued interest, if any, received upon the sale of the 41bonds shall be applied to the discharge of a like amount of interest 42upon the bonds when due Any expense incurred by the issuing 43officials for advertising, engraving, printing, clerical, 44authenticating, registering, legal or other services necessary to carry 45out the duties imposed upon them by the provisions of this act shall 46be paid from the proceeds of the sale of the bonds by the State 47Treasurer, upon the warrant of the Director of the Division of 48Budget and Accounting in the Department of the Treasury, in the 49same manner as other obligations of the State are paid A2786 GREENWALD 10 18 Bonds of each series issued hereunder shall mature, 3including any sinking fund redemptions, not later than the 35th year 4from the date of issue of that series, and in amounts as shall be 5determined by the issuing officials The issuing officials may 6reserve to the State by appropriate provision in the bonds of any 7series the power to redeem any of the bonds prior to maturity at the 8price or prices and upon the terms and conditions as may be 9provided in the bonds 10 11 19 Any bond or bonds issued hereunder which are subject to 12refinancing pursuant to the "Refunding Bond Act of 1985," 13P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), 14shall no longer be deemed to be outstanding, shall no longer 15constitute a direct obligation of the State of New Jersey, and the 16faith and credit of the State shall no longer be pledged to the 17payment of the principal of, redemption premium, if any, and 18interest on the bonds, and the bonds shall be secured solely by and 19payable solely from moneys and government securities deposited in 20trust with one or more trustees or escrow agents, which trustees and 21escrow agents shall be trust companies or national or state banks 22having powers of a trust company, located either within or without 23the State, as provided herein, whenever there shall be deposited in 24trust with the trustees or escrow agents, as provided herein, either 25moneys or government securities, including government securities 26issued or held in book-entry form on the books of the Department of 27Treasury of the United States, the principal of and interest on which 28when due will provide money which, together with the moneys, if 29any, deposited with the trustees or escrow agents at the same time, 30shall be sufficient to pay when due the principal of, redemption 31premium, if any, and interest due and to become due on the bonds 32on or prior to the redemption date or maturity date thereof, as the 33case may be; provided the government securities shall not be 34subject to redemption prior to their maturity other than at the option 35of the holder thereof The State of New Jersey hereby covenants 36with the holders of any bonds for which government securities or 37moneys shall have been deposited in trust with the trustees or 38escrow agents as provided in this section that, except as otherwise 39provided in this section, neither the government securities nor 40moneys so deposited with the trustees or escrow agents shall be 41withdrawn or used by the State for any purpose other than, and shall 42be held in trust for, the payment of the principal of, redemption 43premium, if any, and interest to become due on the bonds; provided 44that any cash received from the principal or interest payments on 45the government securities deposited with the trustees or escrow 46agents, to the extent the cash will not be required at any time for 47that purpose, shall be paid over to the State, as received by the 48trustees or escrow agents, free and clear of any trust, lien, pledge or 49assignment securing the bonds; and to the extent the cash will be A2786 GREENWALD 11 1required for that purpose at a later date, shall, to the extent 2practicable and legally permissible, be reinvested in government 3securities maturing at times and in amounts sufficient to pay when 4due the principal of, redemption premium, if any, and interest to 5become due on the bonds on and prior to the redemption date or 6maturity date thereof, as the case may be, and interest earned from 7the reinvestments shall be paid over to the State, as received by the 8trustees or escrow agents, free and clear of any trust, lien or pledge 9securing the bonds Notwithstanding anything to the contrary 10contained herein: a the trustees or escrow agents shall, if so 11directed by the issuing officials, apply moneys on deposit with the 12trustees or escrow agents pursuant to the provisions of this section, 13and redeem or sell government securities so deposited with the 14trustees or escrow agents, and apply the proceeds thereof to (1) the 15purchase of the bonds which were refinanced by the deposit with 16the trustees or escrow agents of the moneys and government 17securities and immediately thereafter cancel all bonds so purchased, 18or (2) the purchase of different government securities; provided 19however, that the moneys and government securities on deposit with 20the trustees or escrow agents after the purchase and cancellation of 21the bonds or the purchase of different government securities shall be 22sufficient to pay when due the principal of, redemption premium, if 23any, and interest on all other bonds in respect of which the moneys 24and government securities were deposited with the trustees or 25escrow agents on or prior to the redemption date or maturity date 26thereof, as the case may be; and b in the event that on any date, as a 27result of any purchases and cancellations of bonds or any purchases 28of different government securities, as provided in this sentence, the 29total amount of moneys and government securities remaining on 30deposit with the trustees or escrow agents is in excess of the total 31amount which would have been required to be deposited with the 32trustees or escrow agents on that date in respect of the remaining 33bonds for which the deposit was made in order to pay when due the 34principal of, redemption premium, if any, and interest on the 35remaining bonds, the trustees or escrow agents shall, if so directed 36by the issuing officials, pay the amount of the excess to the State, 37free and clear of any trust, lien, pledge or assignment securing the 38refunding bonds 39 40 20 Refunding bonds issued pursuant to P.L.1985, c.74 as 41amended by P.L.1992, c.182 (C.49:2B-1 et seq.) may be 42consolidated with bonds issued pursuant to section of this act or 43with bonds issued pursuant to any other act for purposes of sale 44 45 21 To provide funds to meet the interest and principal payment 46requirements for the bonds and refunding bonds issued under this 47act and outstanding, there is appropriated in the order following: A2786 GREENWALD 12 a Revenue derived from the collection of taxes under the "Sales 2and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much 3thereof as may be required; and b If, at any time, funds necessary to meet the interest, 5redemption premium, if any, and principal payments on outstanding 6bonds issued under this act are insufficient or not available, there 7shall be assessed, levied and collected annually in each of the 8municipalities of the counties of this State, a tax on the real and 9personal property upon which municipal taxes are or shall be 10assessed, levied and collected, sufficient to meet the interest on all 11outstanding bonds issued hereunder and on the bonds proposed to 12be issued under this act in the calendar year in which the tax is to be 13raised and for the payment of bonds falling due in the year 14following the year for which the tax is levied The tax shall be 15assessed, levied and collected in the same manner and at the same 16time as are other taxes upon real and personal property The 17governing body of each municipality shall cause to be paid to the 18county treasurer of the county in which the municipality is located, 19on or before December 15 in each year, the amount of tax herein 20directed to be assessed and levied, and the county treasurer shall 21pay the amount of the tax to the State Treasurer on or before 22December 20 in each year 23 If on or before December 31 in any year, the issuing officials, by 24resolution, determine that there are moneys in the General Fund 25beyond the needs of the State, sufficient to pay the principal of 26bonds falling due and all interest and redemption premium, if any, 27payable in the ensuing calendar year, the issuing officials shall file 28the resolution in the office of the State Treasurer, whereupon the 29State Treasurer shall transfer the moneys to a separate fund to be 30designated by the State Treasurer, and shall pay the principal, 31redemption premium, if any, and interest out of that fund as the 32same shall become due and payable, and the other sources of 33payment of the principal, redemption premium, if any, and interest 34provided for in this section shall not then be available, and the 35receipts for the year from the tax specified in subsection a of this 36section shall be considered and treated as part of the General Fund, 37available for general purposes 38 39 22 Should the State Treasurer, by December 31 of any year, 40deem it necessary, because of the insufficiency of funds collected 41from the sources of revenues as provided in this act, to meet the 42interest and principal payments for the year after the ensuing year, 43then the State Treasurer shall certify to the Director of the Division 44of Budget and Accounting in the Department of the Treasury the 45amount necessary to be raised by taxation for those purposes, the 46same to be assessed, levied and collected for and in the ensuing 47calendar year The director shall, on or before March following, 48calculate the amount in dollars to be assessed, levied and collected 49in each county as herein set forth This calculation shall be based A2786 GREENWALD 13 1upon the corrected assessed valuation of each county for the year 2preceding the year in which the tax is to be assessed, but the tax 3shall be assessed, levied and collected upon the assessed valuation 4of the year in which the tax is assessed and levied The director 5shall certify the amount to the county board of taxation and the 6treasurer of each county The county board of taxation shall include 7the proper amount in the current tax levy of the several taxing 8districts of the county in proportion to the ratables as ascertained for 9the current year 10 11 23 For the purpose of complying with the provisions of the 12State Constitution, this act shall be submitted to the people at the 13general election next occurring at least 70 days after enactment To 14inform the people of the contents of this act, it shall be the duty of 15the Attorney General, after this section takes effect, and at least 60 16days prior to the election, to cause this act to be published at least 17once in one or more newspapers of each county, if any newspapers 18be published therein and to notify the clerk of each county of this 19State of the passage of this act; and the clerks respectively, in 20accordance with the instructions of the Attorney General, shall have 21printed on each of the ballots the following: 22 If you approve of the act entitled below, make a cross (x), plus 23(+), or check () mark in the square opposite the word "Yes." 24 If you disapprove of the act entitled below, make a cross (x), plus 25(+), or check () mark in the square opposite the word "No." 26 If voting machines are used, a vote of "Yes" or "No" shall be 27equivalent to these markings respectively A2786 GREENWALD 14 YES NO AFFORDABILITY, COLLEGE CAPACITY, ECONOMIC AND STUDENT SUCCESS BOND ISSUE Shall the "Affordability, College Capacity, and Economic and Student Success (ACCESS) Bond Act of 2006," which authorizes the State to issue bonds in the amount of $2,705,000,000 for the purpose of providing financing for the construction, reconstruction, replacement, development, extension, improvement, renovation, rehabilitation and equipment of classrooms, academic buildings, libraries, computer facilities, and other higher education buildings at New Jersey’s public and independent institutions of higher education; and in a principal amount sufficient to refinance any of the bonds if the same will result in a present day savings; and providing the ways and means to pay the interest on the debt and also to pay and discharge the principal thereof, be approved? INTERPRETIVE STATEMENT Approval of this act would authorize the sale of $2,705,000,000 in State general obligation bonds to be used to finance the construction, reconstruction, replacement, development, extension, improvement, renovation, rehabilitation and equipment of classrooms, academic buildings, libraries, computer facilities, and other buildings at New Jersey public and independent institutions of higher education The act also authorizes the issuance of bonds in a sufficient amount to refinance any of the bonds if that will result in a present day savings The fact and date of the approval or passage of this act, as the 4case may be, may be inserted in the appropriate place after the title 5in the ballot No other requirements of law of any kind or character 6as to notice or procedure, except as herein provided, need be 7adhered to The votes so cast for and against the approval of this act, by 9ballot or voting machine, shall be counted and the result thereof 10returned by the election officer, and a canvass of the election had in 11the same manner as is provided for by law in the case of the 12election of a Governor, and the approval or disapproval of this act 13so determined shall be declared in the same manner as the result of 14an election for a Governor, and if there is a majority of all the votes 15cast for and against it at the election in favor of the approval of this 16act, then all the provisions of this act not made effective theretofore 17shall take effect forthwith A2786 GREENWALD 15 24 There is appropriated the sum of $5,000 to the Department 2of Law and Public Safety for expenses in connection with the 3publication of notice pursuant to section 23 of this act 25 The commission shall submit to the State Treasurer and the 6New Jersey Commission on Capital Budget and Planning with the 7commission’s annual budget request a plan for the expenditure of 8funds from the "Affordability, College Capacity, and Economic and 9Student Success (ACCESS) Fund" for the upcoming fiscal year 10The plan shall include the following information: a performance 11evaluation of the expenditures made from the fund to date; a 12description of programs planned during the upcoming fiscal year; a 13copy of the regulations in force governing the operation of 14programs that are financed, in part or in whole, by funds from the 15"Affordability, College Capacity, and Economic and Student 16Success (ACCESS) Fund"; and an estimate of expenditures for the 17upcoming fiscal year 18 19 26 Immediately following the submission to the Legislature of 20the Governor's annual budget message, the commission shall submit 21to the Legislature pursuant to section of P.L 1991, c.164 22(C.52:14-19.1), and to the Joint Budget Oversight Committee, or its 23successor, a copy of the plan called for under section 25 of this act, 24together with such changes therein as may have been required by 25the Governor's budget message 26 27 27 All appropriations from the "Affordability, College Capacity, 28and Economic and Student Success (ACCESS) Fund" shall be by 29specific project allocation, and any transfer of any funds so 30appropriated shall require the approval of the Joint Budget 31Oversight Committee, or its successor 32 33 28 This section and sections 23 and 24 of this act shall take 34effect immediately and the remainder of this act shall take effect as 35and when provided in section 23 36 37 38 STATEMENT 39 40 This bill, entitled the "Affordability, College Capacity, and 41Economic and Student Success (ACCESS) Bond Act of 2006," 42authorizes the issuance of $2,705,000,000 in State general 43obligation bonds Under the bill’s provisions, funds resulting from 44the issuance of the bonds would be used to provide grants to public 45and independent institutions of higher education to construct, 46reconstruct, develop, extend, improve and equip classrooms, 47academic buildings, libraries, computer facilities, and other higher 48education buildings The bond proceeds would be allocated in the 49following manner: A2786 GREENWALD 16 (1) $900,000,000 for the construction of higher education 2buildings at the State colleges and universities established pursuant 3to chapter 64 of Title 18A of the New Jersey Statutes; (2) $594,000,000 for the construction of higher education 5buildings at Rutgers, The State University; (3) $308,000,000 for the construction of higher education 7buildings at the University of Medicine and Dentistry of New 8Jersey; (4) $198,000,000 for the construction of higher education 10buildings at the New Jersey Institute of Technology, of which 11amount a minimum of 10% will be for projects in the eight 12southernmost counties of the State; 13 (5) $530,000,000 for the construction of higher education 14buildings at the county colleges; and 15 (6) $175,000,000 for the construction of higher education 16buildings at the independent institutions of higher education 17 The bill provides that the bond act is to be submitted to the 18people for approval at the November, 2006 general election The 19bill appropriates $5,000 to the Department of Law and Public 20Safety for expenses in connection with public notice requirements 21 New Jersey’s economic competitiveness and prosperity are 22directly related to the quality and capacity of its colleges and 23universities Higher education is the foundation of this State’s 24economic well-being as well as being critical in the realization of 25individual success The State ranks eighth among states in the 26percentage of high school graduates that go directly from high 27school to college, and it ranks fifth in the percentage of its 28population with baccalaureate degrees or higher Although these 29statistics are laudable, in contrast the State also has the sixth highest 30outmigration rate of baccalaureate-seeking students in the nation 31The net migration - the difference between the number of students 32leaving the State and the number entering to attend college - is the 33highest in the nation 34 Population growth projections indicate that over the next eight to 35ten years New Jersey will be a high-growth State in terms of the 36population of 18 to 24 year-olds This translates into a total 37undergraduate and graduate enrollment of approximately 54,000 38students by 2010 The State has deferred investment in its system 39of higher education There has not been a voter-approved general 40obligation bond issue dedicated to the higher education 41infrastructure since 1988 Higher education institutions in this 42State, therefore, are entirely unprepared to accommodate this 43tremendous growth in student population 44 A significant percentage of this growth will occur in southern 45New Jersey According to census data, New Jersey’s population 46grew by 14% between 1980 and 2000 The population in the eight 47southernmost counties – Atlantic, Burlington, Camden, Cape May, 48Cumberland, Gloucester, Ocean and Salem – grew by 22% These 49eight counties constitute half of the State’s landmass and include A2786 GREENWALD 17 127% of its population, yet only 12.5% of the undergraduate seats at 2the four-year institutions of higher education in this State are 3located in those counties Increased investment in four-year 4institutions of higher education located in the eight southernmost 5counties of the State is imperative to adequately address population 6trends and to provide increased higher education opportunities to 7our students in southern New Jersey The convergence of economic competitiveness, growing 9workforce demands, and demographic trends poses critical policy 10decisions for New Jersey Increasing higher education capacity – to 11educate the growing number of recent high school graduates, to 12provide ongoing education to upgrade the skills of the current 13workforce, to extend educational access to underrepresented groups, 14and to provide baccalaureate and graduate programs in underserved 15areas of the State – is an opportunity and an obligation deserving 16immediate Statewide attention and resources Such an investment is 17vital to New Jersey’s prosperity in the knowledge-based, global 18economy ... authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $2,705,000,000 for the purpose of the construction, reconstruction,... and which are eligible to receive State aid under the 32provisions of the Constitution of the United States of America and 33the Constitution of the State of New Jersey, but does not include 34any... 4 2State University, the State colleges and universities established 43pursuant to chapter 64 of Title 18A of the New Jersey Statutes, the 4 4New Jersey Institute of Technology, the University of