New Jersey 2022-2023 Regular Session

New Jersey Senate Bill SCR71

Introduced

2/14/22

Refer

2/14/22

Caption

Amends Constitution to limit use of nonrecurring revenue in State budget except in certain times of crisis and limits State budget growth.

Impact

If enacted, SCR71 significantly alters the fiscal landscape of New Jersey by mandating a stricter approach to budget formulation. The amendment intends to curb possible future fiscal challenges arising from short-sighted budgeting practices that rely on nonrecurring revenues. Ultimately, it aims to bolster financial discipline within state government operations, ensuring that budget decisions are made responsibly and based on predictable revenue streams. The specific allocation of unspent recurring revenue into the Surplus Revenue Fund, also known as the 'rainy day fund', is meant to provide additional safety in times of unanticipated financial strain.

Summary

Senate Concurrent Resolution No. 71 (SCR71) proposes a constitutional amendment to the New Jersey Constitution requiring that the State budget be balanced against regularly collected recurring revenue. This measure restricts the use of one-time collections or nonrecurring revenue in state budgets, except in specified crisis situations that can only be addressed through a two-thirds vote in each house of the Legislature. Additionally, SCR71 places a limit on the growth of the State budget, stipulating that it cannot exceed the growth of the Consumer Price Index from the preceding year. The proposal aims at promoting long-term financial stability by ensuring a sustainable budgetary framework.

Contention

Debate surrounding SCR71 highlights concerns over potential restrictions on government flexibility during fiscal emergencies. Opponents argue that limiting budgetary resources could hinder the State's ability to respond effectively to unforeseen crises, such as natural disasters or economic downturns. Proponents, on the other hand, assert that the amendment is a necessary step towards fostering fiscal responsibility and reducing dependency on volatile revenue sources. They contend it will protect against reckless spending habits while still allowing for an emergency override if absolutely necessary.

Latest NJ SCR71 Activity

View All Events: NJ 2022-2023 Regular Session SCR71

Companion Bills

No companion bills found.

Previously Filed As

NJ SCR42

Amends Constitution to limit use of nonrecurring revenue in State budget except in certain times of crisis and limits State budget growth.

NJ H0842

Amends existing law to revise provisions regarding certain limitations of budget requests by taxing district and to provide certain exceptions to such limits.

NJ S864

Limiting excessive growth in the operating budgets of health care oversight agencies

NJ ACR95

Proposes constitutional amendment requiring State revenue estimates for purposes of a balanced State budget be determined by Governor in accordance with State Revenue Forecasting Integrity Commission.

NJ S1252

Adds to existing law to provide for limitations on increases in the annual maintenance budgets of state entities.

NJ HJRJ

State finance: budgets; limits for state spending; provide for, and provide for taxpayer refunds. Amends sec. 28, art. IX of the state constitution.

NJ HJR1

Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

NJ ACR91

Amends State Constitution to prohibit State from using bonds to balance State budget.

NJ HJR35

Proposes a constitutional amendment to impose an appropriation spending limitation and to establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, implement sales tax changes, and allow for certain taxation changes based on revenue triggers, by general law

NJ HJR1

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