Assemblywoman Aura Dunn introduced a bill on Mar. 17 that would increase state aid for municipalities with watershed lands in New Jersey.
The legislation aims to address financial challenges faced by Highlands communities, which play a key role in protecting the state’s drinking water but have experienced budget shortfalls due to development restrictions and changes in school funding laws.
Dunn’s bill (A4770) proposes doubling the per-acre aid rate for watershed moratorium offset aid and watershed property municipal aid from $47 to $94. It also seeks to raise the annual allocation from realty transfer fee revenues to the Highlands Protection Fund from $5 million to $12 million, with at least 25% of that aid required to support local schools. “Highlands communities protect our clean drinking water for the entire state,” Dunn said. “The state must finally keep its promise to these towns and schools.”
Two laws have contributed to financial strain in the region: the Highlands Water Protection and Planning Act of 2004, which restricts development across seven counties, and the School Funding Reform Act of 2008, which was intended to provide equitable funding but has resulted in deficits for some districts. According to a January 2026 report cited by Dunn, municipalities fully within preservation areas face significant financial distress without adequate compensation for lost development opportunities. She compared this situation to New York City residents paying $165 million annually in local taxes for their own watershed region.
Dunn said, “The report further states money from the Highlands Protection Fund goes to municipalities outside the region, while some towns in the Highlands get nothing.” The cumulative impact has left Jefferson Township Schools with a $45 million deficit due to state aid cuts, an issue affecting many districts throughout the Highlands.
Other bills in Dunn’s “Clean Water Promise” package include a supplemental appropriation of $4.8 million for Jefferson schools (A4456) and a resolution (ACR126) urging revision of school funding laws affecting restricted-development areas like the Highlands. “We can both protect our natural resources and the education of our Highlands students through thoughtful legislation such as the bills I’ve proposed,” Dunn said. “Their unique situation calls for decisive action.”
John DiMaio has been involved with public service roles including serving as mayor of Hackettstown from 1991 to 1999 and as part of the Warren County Board of Freeholders between 2000 and 2009, according to the official legislative roster. DiMaio represents District 23—which includes Hackettstown—and joined the General Assembly in 2009 before becoming Minority Leader starting in 2022. He has also held positions such as Appropriations Officer from 2012-2017 and Budget Officer from 2018-2019.
