Public Administration
Lawmakers Consider Utility Reform Bills Ahead of Summer Rate Hikes – On May 5th, the Assembly Telecommunications and Utilities Committee held a hearing on several bills that aim to mitigate upcoming electricity rate increases. The proposed measures, scheduled to take effect in June, include requiring the Board of Public Utilities (BPU) to return excess profits to customers, creating new training requirements for BPU members, and mandating that the BPU consider the “lowest reasonable” return on equity when setting utility base rates, among other provisions. The hearing took place about a month before a projected 20% spike in electricity prices, driven by recent price-setting auctions, which could raise the average monthly bill by around $25. Supporters argued the reforms would protect consumers and reduce long-term price increases. However, opponents warned they may discourage infrastructure investment and fail to address immediate price surges this summer.
Federal Appeals Court Considers Challenge to New Jersey Immigration Detention Law – On May 1st, a federal appeals panel heard arguments in a case challenging a state law issued in 2021 that bans new or renewed contracts for immigration detention facilities operated by private companies or local governments. CoreCivic, the private operator of the only state detention center, previously challenged the law in court, arguing it violated the Supremacy Clause. A federal judge overturned the prohibition for private operators in a 2023 ruling. The state government then appealed the ruling. State Solicitor General Jeremy Feigenbaum defended the statute, emphasizing that it does not ban detention but only limits private contracting and still permits federal authorities to build or lease facilities directly. Opponents, including CoreCivic, argued that not having state detention centers complicates enforcement logistics and increases federal enforcement costs. The case comes amid rising immigration enforcement under President Trump’s second term and follows the announcement of a new private detention center planned in Newark.
State Funding at Risk Under President Trump’s Budget Proposal – On May 2nd, the Trump administration released a $1.7 trillion budget proposal, calling for severe cuts to several federal departments focused on science, housing, environmental protection, education, and health, while increasing funding for defense and immigration enforcement. These federal cuts threaten to disrupt ongoing programs in New Jersey, especially those for low-income residents. For example, New Jersey receives about $1.2 billion in federal education funding yearly, primarily to support students from low-income families or those with disabilities. In 2023, more than 300,000 state residents received approximately $2 billion in federal rental assistance. A federal program run by the Department of Health and Human Services has also helped around 245,000 low-income state residents with an average of $490 monthly in utility assistance. Democratic lawmakers and Governor Murphy’s office criticized the budget as sharply burdensome, disruptive, and harmful to working families.