New Jersey 2024-2025 Regular Session

New Jersey Senate Bill SCR71

Introduced

1/9/24

Refer

1/9/24

Caption

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

Impact

This amendment seeks to limit the growth of the state budget by capping any increases to no more than the growth in the Consumer Price Index (CPI) during the same period. This stipulation aims to ensure that budgetary growth remains tied to the economic realities of the state, thereby providing a more sustainable fiscal pathway. Additionally, any recurring revenues that remain unspent by the end of a fiscal period are mandated to be deposited into the Surplus Revenue Fund, often referred to as the 'rainy day fund.' This can help the state build a financial cushion against future economic uncertainties.

Summary

SCR71 is a proposed constitutional amendment aimed at reforming the budgetary practices of the State of New Jersey by ensuring that the state budget is balanced using only recurring revenues. The proposal explicitly prohibits the use of one-time or nonrecurring revenues for maintaining budget equilibrium, except during times of emergency, which can be overridden by a two-thirds vote in the Legislature. This is designed to foster greater fiscal responsibility and long-term financial health for the state by preventing short-sighted budgeting practices.

Contention

There are potential points of contention surrounding SCR71. Critics may argue that the restrictions on using nonrecurring revenues could limit flexibility in times of fiscal crisis, potentially hampering the state’s ability to respond effectively to unanticipated needs. Proponents, on the other hand, assert that this measure is essential for preventing fiscal irresponsibility and the harm caused by relying on temporary funding sources. The debate primarily centers on balancing immediate fiscal needs against the long-term financial health of the state.

Latest NJ SCR71 Activity

View All Events: NJ 2024-2025 Regular Session SCR71

Companion Bills

NJ SCR71

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

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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