New Jersey Senate Bill SCR80

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

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.

Impact

If adopted, this constitutional amendment would modify Article VIII, Section II of the New Jersey Constitution. It emphasizes fiscal responsibility by mandating that proceeds from the transfer of real property, either through sale or lease by State departments or independent authorities, be handled distinctly from general revenue. By enforcing this separation, the amendment aims to bolster funding for capital improvements, potentially leading to enhanced infrastructure development across New Jersey.

Summary

Senate Concurrent Resolution No. 80 (SCR80) proposes a constitutional amendment aimed at restricting the use of funds derived from the transfer of State government and independent State authority capital assets. The resolution specifically mandates that these funds can only be allocated for capital projects and explicitly prohibits their use for ordinary State government operating expenses. This amendment seeks to ensure that money raised from the sale or lease of State-owned properties is directed solely towards projects that enhance state infrastructure rather than being absorbed into the daily operational budget of the government.

Contention

The primary contention surrounding SCR80 resides in the balance of resource allocation within the state government. Proponents argue that this amendment is critical for promoting transparency and accountability in state finances by ensuring that economic gains from asset transfers are invested in tangible community projects rather than used for recurring expenses that do not contribute to long-term growth. However, opponents may raise concerns about the implications of restricting funding flexibility for the state's budget, particularly in challenging economic times when operational funds could be at a premium and immediate needs arise.