Bill Text: NJ ACR91 | 2010-2011 | Regular Session | Introduced

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Bill Title: Proposes constitutional amendment to establish an annual State appropriations cap on State government operating expenses.

Spectrum: Moderate Partisan Bill (Republican 7-1)

Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Appropriations Committee [ACR91 Detail]

Download: New_Jersey-2010-ACR91-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 91

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 

 

Sponsored by:

Assemblyman  ANTHONY M. BUCCO

District 25 (Morris)

 

Co-Sponsored by:

Assemblyman Biondi, Assemblywoman Addiego, Assemblymen Rudder, Chiusano, Assemblywoman McHose, Assemblymen DiMaio and DiCicco

 

 

 

 

SYNOPSIS

     Proposes constitutional amendment to establish an annual State appropriations cap on State government operating expenses.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  

A Concurrent Resolution proposing to amend Article VIII, Section II of the Constitution of the State of New Jersey.

 

     Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

 

     1.    The following proposed amendments to the Constitution of the State of New Jersey are agreed to:

 

PROPOSED AMENDMENTS

 

     Amend Article VIII, Section II, paragraph 2 to read as follows:

     2.    a.  No money shall be drawn from the State treasury but for appropriations made by law. All moneys for the support of the State government and for all other State purposes as far as can be ascertained or reasonably foreseen, shall be provided for in one general appropriation law covering one and the same fiscal year; except that when a change in the fiscal year is made, necessary provision may be made to effect the transition. No annual general appropriation law or other law appropriating money for any State purpose shall be enacted if the [appropriation] appropriations contained therein, together with all prior appropriations made for the same fiscal period, shall exceed the total amount of revenue on hand and anticipated which will be available to meet such appropriations during such fiscal period, as certified by the Governor.  Any law appropriating money for any State purpose shall display all appropriations as line-item appropriations designating a specific amount of money expressed as a specific numerical figure for a particular purpose and not by means of general language committing funds in an unspecified, conditional or contingent amount for any purpose.

     b.    In each State fiscal year commencing after approval of this amendment by the voters, no annual appropriation law or supplemental appropriation law or other law appropriating money from any source, for any State purpose for the same fiscal year shall be enacted if the appropriation or appropriations contained therein, together with all prior appropriations made for the same fiscal year, shall exceed the amount of total State appropriations enacted for the prior fiscal year by 2.5 percent.

     The following appropriations shall not be subject to the fiscal year appropriation limit established in this subparagraph:

     (1)   of State aid for school districts, municipalities and counties;

     (2)   to pay the interest and principal due on State debt authorized by a majority of the legally qualified voters of this State pursuant to the provisions of paragraph 3 of Section II of Article VIII of this Constitution or due on refinancing bonds issued pursuant thereto;

     (3)   of State revenue directed to be credited to a special account in the General Fund for purposes of providing funding, including loans or grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation; and to satisfy any payments relating to bonds, notes, or other obligations, including refunding bonds, issued by an authority or similar entity established by law to provide funding, including loans and grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation pursuant to paragraph 7 of Section II of Article VIII of this Constitution and for the line-items for those purposes;

     (4)   of  State revenues derived from the establishment and operation of casino gambling establishments for the purpose of providing funding for reductions in property taxes, rental, telephone, gas, electric, and municipal utilities charges of eligible senior citizens and disabled residents of the State, and for additional or expanded health services or benefits or transportation services or benefits to eligible senior citizens and disabled residents pursuant to paragraph 2 of Section VII of Article IV of this Constitution;

     (5)   for payment by the State as grants to individuals, public agencies or private agencies for benefits to which the recipients are entitled by law or regulation, for the provision of services for which the State has a primary responsibility, and for subsidies and the provision of services for which the State has no responsibility, but which the State elects to provide;

     (6)   money received or reasonably anticipated to be received by the State from the federal government;

     (7)   money appropriated for payment of State capital construction projects, including but not limited to appropriations of State revenue directed to be credited to a special account in the General Fund for purposes of the State transportation system pursuant to paragraph 4 of Section II of Article VIII of this Constitution and for the line-items for the planning, acquisition, engineering, construction, reconstruction, repair and rehabilitation of the transportation system in this State pursuant to that paragraph; and

     (8)   money required to be deposited in, and expended from, the "Property Tax Relief Fund" established by N.J.S.54A:9-25, the "Casino Control Fund" established by section 143 of P.L.1977, c.110 (C.5:12-143) and the "Gubernatorial Elections Fund" established by N.J.S.54A:9-25.1.

     The appropriation limit for the first State fiscal year commencing after approval of the amendment adding subparagraphs b. through e. of this paragraph, shall be determined using as the base for that determination the amount of all appropriations enacted in the prior fiscal year, exclusive of appropriations listed as exceptions in (1) through (8) of this subparagraph b., but converting all appropriations that were made during that prior fiscal year by means of general language committing funds in an unspecified, conditional or contingent amount to specific amounts of money expressed as specific numerical figures.

     Appropriations enacted as fiscal emergency measures pursuant to subparagraph c. of this paragraph shall not be used in determining the base amount of enacted appropriations for the prior fiscal year for the purpose of determining an annual appropriation limit for any fiscal year.

     c.     Provided however, that the Legislature may, from time to time, provide by law for an appropriation or appropriations in excess of the appropriation limit provided in subparagraph b. of this paragraph if  the bill that proposes to enact such excess appropriation or appropriations is passed by the Legislature as a fiscal emergency measure by the affirmative vote of two-thirds of the authorized membership of each house of the Legislature, notwithstanding the provisions of Article IV, Section IV, paragraph 6 of this Constitution to the contrary.

     d     No transfer of an item of appropriation or other budgetary mechanism shall allow for an appropriation in excess of the appropriation limit provided in subparagraph b. of this paragraph except under the procedure in subparagraph c. of this paragraph.

     e.     If any function or service performed by the State is transferred to, or its costs of operation or performance are assumed by, any agency or instrumentality of the State or of any county or municipality, with the power to issue bonds to finance the undertaking of any function or the performance of any service, the decrease in State appropriations in the fiscal year in which the transfer or assumption occurred shall be deemed to have  occurred in the prior fiscal year in order to decrease the prior year appropriations as the base upon which the appropriation limit shall be calculated. "Bonds" as used in this subsection means bonds which do not constitute a debt or liability of the State or of any of its counties or municipalities or a pledge of the faith and credit of the State or of any of its counties or municipalities.

(cf: Art.VIII, Section II, par.2, January 1, 1948)

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Attorney General, not less than three months prior to the general election.

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b. In every municipality the following question:

 

		ESTABLISHES AN ANNUAL STATE APPROPRIATIONS CAP ON STATE GOVERNMENT OPERATIONS
	YES	Do you approve the proposed amendment to the State Constitution which provides that for each State fiscal year beginning after the adoption of this amendment, no annual appropriation law or supplemental appropriation law shall make any appropriation except by line-item amount, nor shall any such law be enacted if the total appropriations enacted for that year exceed the appropriations enacted for the prior fiscal year by 2.5 percent, except for the following appropriations: (1) of State aid for school districts, municipalities and counties, (2) for debt service due on Statewide voter-approved bonds or on their refinancing bonds, (3) from revenues constitutionally dedicated for recreation and conservation, farmland preservation and historic preservation and to finance and pay for appropriations for those purposes, (4) revenues constitutionally dedicated from the operations of casino gambling establishments and appropriated for the purposes authorized for assistance for eligible senior citizens and disabled citizens, for grants-in-aid, (5) of funds received from the federal government, (6) for grants-in aid, (7) for State capital construction projects including those from State revenue constitutionally dedicated for the State transportation system and appropriations to finance and pay for that purpose, (8) and money appropriated from the Property Tax Relief Fund, the Casino Control Fund and for the public financing of gubernatorial elections; and which limitation on appropriations may be exceeded only if passed by the Legislature as a fiscal emergency measure by the affirmative vote of two-thirds of the authorized membership of each house of the Legislature?

 

		INTERPRETIVE STATEMENT
	NO	This constitutional amendment limits the amount that the State can appropriate for the general operating costs of State government in a fiscal year to 2.5 percent above the amount of those appropriations in the prior year.  All appropriations must be made as line-items in dollar amounts and thus will be fully counted under this limit. The exceptions to this limit include dedicated funds and State spending that does not support the day-to-day operations of the State government. The exceptions are appropriations: (1) for State aid to school districts, municipalities and counties which offset property taxes, (2) to pay debt service on voter-approved State bonds, (3) of constitutionally dedicated revenue, (4) for grants-in aid, (5) of federal funds,  (6) for State capital construction projects, and (7) for public financing of gubernatorial elections. The 2.5 percent limit is equal to the 2.5% annual spending cap placed upon public school districts and municipal governments by State law. The annual State operations appropriations limit may only be exceeded by passage by the  Legislature of a fiscal emergency measure by the affirmative vote of two-thirds of the authorized membership of each house of the Legislature.

 

SCHEDULE

 

     This constitutional amendment shall apply to the fiscal year beginning on July 1 next following its approval by the people pursuant to Article IX, paragraph 1 of the Constitution, and each fiscal year thereafter.

 

 

STATEMENT

 

     This concurrent resolution proposes to amend the New Jersey Constitution to establish an annual State appropriation cap on the operating costs of State government.  The annual growth in these appropriations may not exceed 2.5% of these appropriations made in prior State fiscal year.  The 2.5% limit is equal to the 2.5% annual spending cap placed upon public school districts and municipal governments by State law.

     Also under this amendment all State government appropriations must be made as line-items in dollar amounts so that all operating costs will be counted under this limit.  This will require the full disclosure through line-item display of all "off-budget" expenditures that are typically authorized by the several hundred language provisions in the annual appropriations act.

     The only exceptions to the appropriations limit are categories of appropriations that are supported by certain constitutionally dedicated revenues and appropriations for non-operating expenses. The exceptions are appropriations (1) for State aid to school districts, municipalities and counties, (2) for debt service on Statewide voter approved bonds, (3) of revenue constitutionally dedicated to recreation, conservation and farmland and historic preservation and appropriated to finance and pay for that purpose, (4) revenues constitutionally dedicated from the operations of casino gambling establishments and appropriated for the purposes authorized for assistance for eligible senior citizens and disabled citizens, (5) for grants-in-aid, (6) of funds received from the federal government, (7) for State capital construction projects and of revenue constitutionally dedicated to the State transportation system and appropriated to finance and pay for that purpose, and (8) of funds dedicated for property tax relief, regulation of the gambling casinos and for public financing of gubernatorial elections.

     The annual State operations appropriations limit may only be exceeded by passage by the  Legislature of a fiscal emergency measure by the affirmative vote of two-thirds of the authorized membership of each house of the Legislature.

     These changes shall first apply during the next State fiscal year after approval of the amendment by the voters.