Requires Governor to transmit budget sustainability statement along with annual budget message.
Impact
The bill mandates detailed accounting of expected revenues and appropriations, which includes a breakdown of potential revenue decreases due to the expiration of existing tax laws and necessary appropriations for public assistance programs like Medicaid. As a result, it is expected to provide clarity and transparency regarding the state’s fiscal position, ensuring that the budgetary decisions align with anticipated income and expenditures. This strategic focus on sustainability is likely to prevent unforeseen fiscal crises and promote more consistent budgetary practices over time.
Summary
Senate Bill No. 643, also known as the Budget Sustainability Act, introduces a requirement for the Governor of New Jersey to include a budget sustainability statement alongside the annual budget message. This measure aims to enhance the financial stability of the state by instituting a two-year budget planning framework. The central premise is to assess the feasibility of proposed appropriations for the upcoming fiscal year without necessitating tax increases or reducing the state's undesignated fund balance, thus fostering a more proactive fiscal approach.
Contention
Discussion surrounding SB 643 may highlight concerns regarding whether this regulation could unduly limit the flexibility of the executive branch in budgetary matters. Critics might argue that such stringent requirements could impede the timely response required to address emerging fiscal needs and priorities since long-term projections can often be uncertain. Additionally, there may be debates regarding the adequacy of current revenue streams to support the mandated expenditures, raising questions about the viability of the state's financial health if economic conditions fluctuate significantly.
"Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.
"Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.
"Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.
"Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.