NJ
New Jersey Senate Bill SCR23

New Jersey 2022-2023 Regular Session

New Jersey Senate Bill SCR23

Introduced
1/11/22  

Caption

Proposes constitutional amendment to establish a 2 percent cap on annual appropriations increases for certain State government spending.

Impact

If adopted, SCR23 will have significant implications for budgetary processes, effectively capping the amount of money the state can appropriate each fiscal year unless specific exceptions apply. Notably, this amendment would not impact appropriations such as state aid to educational institutions and local governments, federal funds received by the state, pension payments, or expenses arising from natural disasters. This framework is designed to encourage prudent fiscal management and prevent sudden increases in state spending that could affect overall financial stability.

Summary

SCR23 is a constitutional amendment proposed to establish a strict 2 percent cap on annual increases in appropriations for certain state government spending in New Jersey. This amendment seeks to amend Article VIII, Section II of the state constitution, standardizing the spending growth limit by requiring that any appropriation law enacted for a state fiscal year may not exceed the appropriations made in the previous fiscal year by more than 2 percent. The intention of this limitation is to enforce fiscal discipline and ensure that state expenditures do not escalate unchecked.

Contention

The proposal has sparked debate among lawmakers and constituents, as it balances the need for fiscal caution against the potential restrictions it poses on spending flexibility during emergencies or economic downturns. Opponents may argue that a rigid cap could inhibit the state's ability to adapt to changing economic conditions, particularly when increased funding is needed for essential services. Furthermore, supporters of the amendment contend that it will create a more predictable and stable financial environment for state budgeting, safeguarding taxpayers from excessive governmental expenditure.

Companion Bills

No companion bills found.

Previously Filed As

NJ SCR70

Proposes constitutional amendment to establish a 2 percent cap on annual appropriations increases for certain State government spending.

NJ ACR69

Proposes constitutional amendment to establish revenue responsibility through annual State appropriations cap limiting spending growth to one percent per year over six years and a permanent revenue responsibility fund reserved for reducing State pension benefit liabilities.

NJ ACR30

Proposes constitutional amendment to establish revenue responsibility through annual State appropriations cap limiting spending growth to one percent per year over six years and a permanent revenue responsibility fund reserved for reducing State pension benefit liabilities.

NJ ACR89

Proposes constitutional amendment to require voter approval whenever State independent authorities issue bonds backed by annual appropriations.

NJ ACR100

Proposes temporary constitutional amendment to provide for State constitutional convention to reduce government spending and to reform system of property taxation.

NJ ACR63

Proposes temporary constitutional amendment to provide for State constitutional convention to reduce government spending and to reform system of property taxation.

NJ ACR164

Proposes constitutional amendment to limit annual increase in assessment of real property.

NJ SCR80

Proposes constitutional amendment restricting use of funds realized from transfer of State government and independent State authority capital assets only for capital projects and not for State government operating expenses.

NJ ACR99

Proposes constitutional amendment restricting use of funds realized from transfer of State government and independent State authority capital assets only for capital projects and not for State government operating expenses.

NJ ACR29

Proposes constitutional amendment to increase veterans' property tax deduction to $1,000, and base future deductions on annual CPI increases.

Similar Bills

NJ SCR70

Proposes constitutional amendment to establish a 2 percent cap on annual appropriations increases for certain State government spending.

NJ ACR88

Proposes constitutional amendment to require voter approval of dedicated revenue source for certain bonded indebtedness for State transportation system.

NJ ACR64

Proposes constitutional amendment to require voter approval of dedicated revenue source for certain bonded indebtedness for State transportation system.

NJ ACR89

Proposes constitutional amendment to require voter approval whenever State independent authorities issue bonds backed by annual appropriations.

NJ A4885

Prohibits certain State appropriations for Fiscal Years 2026 and 2027 from exceeding State appropriations for Fiscal Year 2025.

CA SCA8

Wildfires: funding.

CA ACA11

The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.

NJ SCR57

Proposes constitutional amendment to require payments by State to State-administered retirement systems and establish in Constitution right of public employees to pension benefit; provides for enforcement of funding obligations and benefit rights.