TRENTON – The Senate Community and Urban Affairs Committee, chaired by Senator Jeff Van Drew (D-Cape May/Cumberland/Atlantic), held a public hearing May 26 on the proposal to end the state’s Urban Enterprise Zone Assistance Fund program, as presented in the FY 2012 state budget.

The spending plan proposes diverting all sales tax revenue collected in Urban Enterprise Zones, which historically has been reinvested in the community for public improvements and economic development projects, to balance the state budget. A state-commissioned report released in February recommended ending the Urban Enterprise Zone Program as it currently exists, and replacing it with an alternative, community-based program. At the time of the report’s release, Community Affairs Commissioner Lori Grifa said the state did not have the financial means to begin a new program in the short term.

The State budget anticipates $94 million in revenue from the program in Fiscal Year 2012. In current Fiscal Year 2011, state officials expect to realize $89 million from the diversion.

The purpose of the meeting was to hear from municipal leaders, businesses and stakeholders about the impact the loss of revenue would have locally.