NJ
New Jersey Senate Bill SCR71

New Jersey 2022-2023 Regular Session

New Jersey Senate Bill SCR71

Introduced
2/14/22  

Caption

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

Impact

If enacted, SCR71 significantly alters the fiscal landscape of New Jersey by mandating a stricter approach to budget formulation. The amendment intends to curb possible future fiscal challenges arising from short-sighted budgeting practices that rely on nonrecurring revenues. Ultimately, it aims to bolster financial discipline within state government operations, ensuring that budget decisions are made responsibly and based on predictable revenue streams. The specific allocation of unspent recurring revenue into the Surplus Revenue Fund, also known as the 'rainy day fund', is meant to provide additional safety in times of unanticipated financial strain.

Summary

Senate Concurrent Resolution No. 71 (SCR71) proposes a constitutional amendment to the New Jersey Constitution requiring that the State budget be balanced against regularly collected recurring revenue. This measure restricts the use of one-time collections or nonrecurring revenue in state budgets, except in specified crisis situations that can only be addressed through a two-thirds vote in each house of the Legislature. Additionally, SCR71 places a limit on the growth of the State budget, stipulating that it cannot exceed the growth of the Consumer Price Index from the preceding year. The proposal aims at promoting long-term financial stability by ensuring a sustainable budgetary framework.

Contention

Debate surrounding SCR71 highlights concerns over potential restrictions on government flexibility during fiscal emergencies. Opponents argue that limiting budgetary resources could hinder the State's ability to respond effectively to unforeseen crises, such as natural disasters or economic downturns. Proponents, on the other hand, assert that the amendment is a necessary step towards fostering fiscal responsibility and reducing dependency on volatile revenue sources. They contend it will protect against reckless spending habits while still allowing for an emergency override if absolutely necessary.

Companion Bills

No companion bills found.

Previously Filed As

NJ SCR71

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

NJ ACR128

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.

NJ ACR78

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.

NJ HB429

An Act Proposing An Amendment To Article Viii, ยง 6 Of The Delaware Constitution Relating To Limiting The Annual Growth Of Expenditures In The State Operating Budget.

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 HB295

(Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)

NJ ACR50

Amends State Constitution to prohibit State from using bonds to balance State budget.

NJ ACR74

Amends State Constitution to prohibit State from using bonds to balance State budget.

NJ HB290

Relating to the constitutional limit on the rate of growth of appropriations and the use of surplus state revenues.

Similar Bills

NJ SCR71

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

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LA HB435

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