New Jersey Assembly Bill A5779

New Jersey 2022-2023 Regular Session

• Introduced: 11/30/23
• Refer: 11/30/23

Caption

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.

Impact

The bill modifies existing reporting requirements to ensure comprehensive monthly and annual disclosures regarding the state's financial position. This includes detailed reports on revenues and expenditures, which will provide a clearer picture of the state's fiscal health. The introduction of monthly cash flow analyses will allow legislators and the public to understand the state's financial situation in real time, facilitating better decision-making. The legislation reinforces the Governor's constitutional responsibilities while also demanding accountability through public explanations for any discrepancies between estimated and actual revenues.

Summary

Assembly Bill A5779 proposes the establishment of the New Jersey Revenue Advisory Board and modernizes the processes surrounding State revenue estimation and expenditure reporting. By focusing on these key areas, the bill aims to enhance transparency in financial reporting and provide more accurate forecasting for the state's budget. The Revenue Advisory Board will consist of the State Treasurer, the Legislative Budget and Finance Officer, and four appointed public members with relevant experience in economic analysis and financial management. This structure will allow the board to produce consensus revenue forecasts to support the state's appropriations.

Contention

While many view A5779 as a positive step towards greater transparency and fiscal responsibility, there may be concerns regarding the operational effectiveness of the newly established advisory board. Stakeholders could debate the qualifications and the political balance among the appointed members, and whether their forecasts will be advisory or prescriptive in nature. Furthermore, the exemption of certain communications from the Open Public Records Act could raise transparency concerns; critics may argue that this undermines the legislative intent of making the budget process more open and accountable to the public.