New Jersey Assembly Bill A3248

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

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 significantly enhances transparency in state financial management by imposing new reporting requirements. It mandates monthly reports on state agency expenditures, offering detailed insight into accrued revenues and expenditures, which will be itemized and compared against forecasts. Additionally, a new requirement for annual financial stress testing will help assess the state's capacity to maintain services during economic fluctuations, thereby providing critical data to inform budget decisions and enhance fiscal accountability.

Summary

Assembly Bill A3248 aims to reform the budgeting process and financial reporting mechanisms within the State of New Jersey. The bill establishes the New Jersey Revenue Advisory Board, which will comprise the State Treasurer, the Legislative Budget and Finance Officer, and four public members with relevant expertise. This board is tasked with providing a consensus forecast of state revenues for the current and upcoming five fiscal years, aimed at guiding state appropriations. In addition, the Governor is instructed to include explanations of any variances between these forecasts and the revenue estimates presented in the Governor's Budget Message.

Contention

Potential points of contention around A3248 may arise from the perceived need for rigorous oversight of the New Jersey Revenue Advisory Board’s activities and the implications for executive power in budget formulation. Some stakeholders may argue that increasing transparency through rigorous documentation and public meetings may lead to more bureaucratic procedures, potentially slowing down decision-making. Moreover, concerns may be raised regarding the scope of discretion retained by the Governor, especially regarding the certification of state revenues, which remains a distinct constitutional responsibility.