Bill Text: NJ SCR19 | 2020-2021 | Regular Session | Introduced

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

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2020-01-14 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [SCR19 Detail]

Download: New_Jersey-2020-SCR19-Introduced.html

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SENATE CONCURRENT RESOLUTION No. 19

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 

 

Sponsored by:

Senator  STEVEN V. OROHO

District 24 (Morris, Sussex and Warren)

 

Co-Sponsored by:

Senator Doherty

 

 

 

 

SYNOPSIS

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

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  

A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 2 of the New Jersey Constitution.

 

     Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section II, paragraph 2 to read as follows:

     2.    No money shall be drawn from the State treasury but for appropriations made by law.  All moneys for the support of the State government and for all other State purposes as far as can be ascertained or reasonably foreseen, shall be provided for in one general appropriation law covering one and the same fiscal year; except that when a change in the fiscal year is made, necessary provision may be made to effect the transition. [No] Except as hereinafter provided, no general appropriation law or other law appropriating money for any State purpose shall be enacted if the appropriation contained therein, together with all prior appropriations made for the same fiscal period, shall exceed the total amount of revenue [on hand and] anticipated to be collected from recurring revenue during regular collection cycles falling within the same fiscal period.  This total amount of revenue shall not include anticipated revenue from a brief and limited collection opportunity, from a special, short-term duration revenue enhancement, or from a non-routine financing or collection effort. The total amount of revenue anticipated to be collected within the same fiscal year which will be available to meet such appropriations during such fiscal period, shall be an amount from such recurring revenue during regular collection cycles as shall be certified by the Governor.  A general appropriation law or other law appropriating money, together with all prior appropriations made for the same fiscal period, may exceed the total amount of revenue anticipated to be collected from recurring revenue during regular collection cycles falling within the same fiscal period, if the Legislature enacts such a law by a vote of two-thirds of all the members of each house for the costs associated with war, or repelling invasion, or suppressing insurrection or meeting an emergency caused by disaster or act of God.  Except as expressly provided in this Constitution, no general appropriation law or other law appropriating money, together with all prior appropriations made for the same fiscal period, may exceed
the same for the immediately preceding fiscal period by more than the increase in the Consumer Price Index during the same fiscal periods.  For the purposes of this paragraph, "Consumer Price Index" means the average of the consumer price indices for all urban consumers in the New York City and the Philadelphia areas as reported by the United States Department of Labor.  Any unspent recurring revenue from a fiscal period shall be deposited in the "Surplus Revenue Fund" established pursuant to Section 1 of P.L.1990, c.44 (C.52:9H-14).

(cf: Art. VIII, Sec. II, par.2, January 1, 1948)

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a.     In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b.    In every municipality the following question:

 

		REQUIRES BUDGET TO BE BALANCED WITH  RECURRING REVENUE EXCEPT IN TIMES OF CRISIS OR DISASTER AND LIMITS BUDGET GROWTH
	YES	Do you approve the proposed amendment to the New Jersey Constitution to provide that: (1) All appropriations for a fiscal period shall be balanced against regularly collected recurring revenue for the same period, excluding one-time collections or nonrecurring revenue, except by a two-thirds vote of each house of the Legislature for the costs associated with war, repelling an insurrection or meeting an emergency caused by disaster or act of God; (2) All appropriations made for a fiscal period shall not exceed the same for the immediately preceding fiscal period by more than the growth in the Consumer Price Index for the same time period; and (3) During a fiscal period, any regularly collected recurring revenue which goes unspent in that same fiscal period shall be deposited into the Surplus Revenue Fund?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment requires that the State budget be balanced with regularly collected recurring revenue.  The balanced State budget may not include the use of one-time collections or nonrecurring revenue.  However, in times of crisis or disaster a budget may exceed amounts collected as recurring revenue if passed by a two-thirds vote in each house of the Legislature.  Additionally, no State budget may exceed the immediately preceding State budget by more than the growth in the Consumer Price Index during the same time period.  If any recurring revenue goes unspent in a State budget year, that revenue must be deposited in the Surplus Revenue Fund, which is commonly known as the "rainy day fund."

 

STATEMENT

 

     This concurrent resolution proposes a constitutional amendment to require that the State budget be balanced only with regularly collected recurring revenue, not one-time collections or nonrecurring revenue.  In times of crisis or disaster, the Legislature may override this constraint by a two-thirds vote in each house. This concurrent resolution also limits the amount by which the budget may grow.  Specifically, no State budget may exceed the previous budget by more than the growth in the Consumer Price Index for the same time period.  Any recurring revenue not spent by the State budget is allocated to the Surplus Revenue Fund, which is more commonly referred to as the "rainy day fund."

     The purpose of this constitutional amendment is to rein-in the practice of using nonrecurring revenues to balance the State budget. This amendment is also meant to contain the growth of the State budget at a rate linked to the growth in the economy.  While promoting greater fiscal responsibility in the process of crafting State budgets, this constitutional amendment is also offered to alleviate potential financial burdens in the future.  The amendment directs that recurring revenues which go unspent, be deposited into the "rainy day fund."  Overall, this proposed amendment to the New Jersey Constitution aims to provide New Jersey with greater long-term financial security by constraining the Legislature's ability to undertake short-sighted budgeting practices.