New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill ACR128

Introduced
3/7/22  

Caption

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.

Impact

The proposed amendment aims to improve transparency and accountability in the state's budgeting process. By requiring the Governor's certification to conform with estimates from the commission, it reduces the potential for subjective revenue manipulation and instills a measure of checks and balances. This constitutional change means that no general appropriation law can be enacted if it exceeds the available and anticipated revenue as estimated, thereby reinforcing the constitutional requirement for a balanced budget.

Summary

ACR128 proposes an amendment to the New Jersey Constitution that mandates the determination of state revenue estimates for a balanced budget to be based on reports from a newly established State Revenue Forecasting Integrity Commission. This move shifts the current system, which allows the Governor to certify revenue based solely on their discretion, to one where the certification aligns with the commission's published estimates. The amendment is designed to enhance fiscal responsibility, ensuring that the certification of funds aligns with independent expert analysis.

Contention

While proponents argue that ACR128 will lead to more responsible fiscal management and a more predictable budgetary process, opponents express concerns that it could reduce the Governor's flexibility in budgeting. Critics worry that rigid adherence to statutory estimates may hinder the state's ability to respond to unforeseen economic changes. As the amendment moves forward, it is likely to provoke discussions on the balance between necessary fiscal oversight and effective governance that can adapt to dynamic economic conditions.

Companion Bills

No companion bills found.

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