POSITION STATEMENT FOR NEW JERSEY FY 2009 BUDGET April 6, 2009 The Jersey Shore Partnership issued the following statement regarding Governor Corzine’s recent budget proposal that for the second year in a row “raids” the dedicated Shore Protection Fund to balance the state budget. The Governor’s proposal will cut beach replenishment funds to below the minimums outlined by law from $25 million to $18.75 million, a cut of 25%. This is in addition to the $9 million “one time borrow” approved by the Legislature for the FY 2009 Budget. The Department of Environmental Protection is the steward of the Shore Protection Fund and beach replenishment projects. According to the Department, $25 million of state funds from prior budget years and local funding have been allocated for critical beach replenishment projects in four shore communities with construction scheduled to begin in the fall/winter 2009. These projects are moving ahead without federal assistance. Additionally, there are at least six replenishment projects that were anticipating federal dollars from either the Stimulus package or the Omnibus Bill that would have to be matched with state funds. However, it appears that this is not going to happen. Beach replenishment funding has been pulled from the Congressional budget by the federal Office of Management and Budget. This creates a very critical situation for the future of our beaches. The Shore Protection Fund, thanks to the Governor, is slowly ebbing away. With the loss of federal funding, we should at the very least keep the Shore Protection fund at the statutory level as intended by the Legislature. We fully appreciate the difficulties faced by the State and the nation at this unprecedented time in recent history. It is for this very reason that we question the wisdom in reducing the limits of a Fund that has been a major economic stimulus for New Jersey. The storms in the early 90s devastated our shore communities and cost the state millions of dollars to rebuild the infrastructure and millions more lost in tourism revenue. The Legislature took action by establishing a fund that would provide a re-occurring dedicated source of revenue to keep our beaches protected from serious erosion caused by future storms. The Shore Protection Fund provides $25 million in guaranteed minimums from the Realty Transfer Tax and has attracted a $2 federal investment for every $1 of New Jersey’s investment. The Shore Protection Fund demonstrates the vision of the Legislature in establishing a long-term solution to saving our beaches and saving the state billions of dollars. The proposed cutback in the dedicated fund is a short-term reaction that will cost the state millions of dollars in future years. The Jersey Shore is integral to the quality of life of New Jersey residents. Twenty-five million (one out of every 11) people in New Jersey and adjoining states live within 50 miles of the Jersey Shore. Thirty-five million live within 100 miles of the shore. These are not just homeowners along the beach. This diverse population represents an enormous economic and political voice in our state. BEACHES ARE A MAJOR BUSINESS IN NEW JERSEY. Beach communities along our unique 127 mile coastline provide $19 billion – one half of the state’s $38 billion tourism revenue - to the state’s economy. Our beaches promote investment in residential and commercial development, create jobs, and attract visitors from throughout the region and from Canada. A thriving shore economy helps the building and marine trades, boardwalk concessions, restaurants, amusement and entertainment centers, in addition to the positive ripple affect on the outlying economies of the retail markets and the banking industry. While we cannot foresee the time and the hour of the next severe storm, we can state with certainty that the storms will come. Beach replenishment has proven to be an engineering solution that is economically feasible, environmentally sensitive and vital to the stability of the state’s tourism economy. After 10 years, 75% of our replenished beaches remain safe, healthy and environmentally sound. Especially at this time when the federal administration has eliminated federal funding for future shore replenishment work, there is a greater urgency to maintain the dedicated Shore Protection Fund at its legislated level. Beaches will need to be replenished and renourished – it is a reality. Our best protection against disastrous sea surges is ensuring that our beaches are prepared to minimize the damage. We fully understand the tough decisions that must be made to balance the budget. We urge, however, that you do not cut back a very successful program that has brought federal dollars into New Jersey, supported a flourishing tourism economy and, most important, and has provided safe, healthy beaches that serve all New Jerseyans. We are most grateful to the Legislature for their continued support of the Shore Protection Fund and believe that keeping the $25 million minimal amount statutorily guaranteed in the Realty Transfer Tax is the right decision for New Jersey. The Jersey Shore Partnership is a not-for-profit, non-partisan organization, founded after the Halloween storm of 1991 to act as an advocate of initiatives and issues that are unique and important to the New Jersey coastal communities with an emphasis on shore protection, beach replenishment and creating sustainable coastal communities that will enhance and support New Jersey’s economy. Dr. Richard Dewling President dewling@aol.com mwalshjspf@gmail.com