Bill Text: NJ SCR110 | 2010-2011 | Regular Session | Introduced
Bill Title: Proposes constitutional amendment to require Governor to annually present to the Legislature a conceptual State budget plan covering the two subsequent State fiscal years.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2010-06-21 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [SCR110 Detail]
Download: New_Jersey-2010-SCR110-Introduced.html
Sponsored by:
Senator THOMAS GOODWIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Proposes constitutional amendment to require Governor to annually present to the Legislature a conceptual State budget plan covering the two subsequent State fiscal years.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution proposing to amend Article V, Section I of the New Jersey Constitution by adding a new paragraph.
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:
PROPOSED AMENDMENT
Amend Article V, Section I by adding a new paragraph 16 to read as follows:
16. The Governor shall annually present to the Legislature a State budget message containing the Governor's recommendations for the State general appropriation laws for the two consecutive State fiscal years commencing after the presentation of the message which laws shall comply with the requirements of Article VIII, Section II, paragraph 2 of this Constitution. The recommendations shall summarize anticipated revenues, expenditures and fund balances for the State general appropriation laws for each of the two State fiscal years. The message shall separately identify recommendations by the Governor that will require consideration of separate legislation by Legislature that will have significant impact upon the recommendations for the general appropriation laws. As may be practicable, the message shall contain an analysis of the State's reliance on recurring and nonrecurring revenue for each State fiscal year and a comparison of recurring and nonrecurring revenue to expenditures.
The paragraph shall not be deemed to require as part of the message the certification required by the Governor pursuant to Article VIII, Section II, paragraph 2 of this Constitution for each of the two State fiscal years and shall not be deemed to compel consideration by Legislature of any recommendations for legislation contained in the message.
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 Secretary of State, 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:
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REQUIRES GOVERNOR TO PROVIDE BUDGET MESSAGE TO LEGISLATURE COVERING BUDGETS FOR TWO FISCAL YEARS
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YES |
Do you approve the proposed amendment to require the Governor to annually present to the Legislature a State budget message containing the Governor's recommendations for the State general appropriation laws for the two consecutive State fiscal years, which though nonbinding, shall summarize anticipated revenues, expenditures and fund balances, identify measures the Governor anticipates proposing for the Legislature's consideration that are anticipated to have a significant impact on the State budget and, as is practicable, analyze the State's reliance on recurring and nonrecurring revenue and how anticipated expenditures compare to such revenue?
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INTERPRETIVE STATEMENT
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NO
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This amendment requires the Governor to present to the Legislature an annual State budget message covering the two following State fiscal years. The budget message will contain a summary of anticipated revenues, spending and fund balances for each of the two State fiscal years. The message will separately identify other legislation the Governor recommends that will have a significant impact on the State budgets for these fiscal years. The message shall also contain, if feasible, an analysis of the State's reliance on recurring and nonrecurring revenue for each State fiscal year and how anticipated expenditures, required or otherwise anticipated, compare to such revenue. This amendment requiring the Governor's two year budget concerns only recommendations to the Legislature and does not change other constitutional authority of the Governor and the Legislature over the budget process. |
SCHEDULE
This amendment shall apply to State fiscal years that follow its approval by the voters at a general election.
STATEMENT
All too frequently, New Jersey State budgets have relied on budgeting practices that result in revenues disappearing or expenditures spiking in the subsequent budget year. For example, in the budget for Fiscal Year 2010, Governor Corzine has proposed relying on the following unsound budgeting practices that create an almost unmanageable structural budget deficit in Fiscal Year 2011:
� Spending approximately $2 billion of federal bailout funds on recurring budget items in one fiscal year when the federal bailout funds will not be available in 2011;
� Reducing debt service payments by more than $400 million in one fiscal year by irresponsibly restructuring debt in a way that pushes, on a one-time basis, more than $400 million of debt service payments due in 2010;
� The next governor will face a $350 million spike in salary spending because Corzine restructured the union contracts to provide no increase today, but a 7% increase in 2011;
� The next governor will face a loss of $1 billion in various taxes that are being structured so they sunset in FY 2010;
� The next governor will face a $1 billion spike in the cost of rebates that are being restructured for a one year savings in FY 2010;
� The next governor will face an Unemployment Insurance Fund that is $1.6 billion in debt from a 2010 deficit and that is on course to spend $2.0 billion more than current revenues;
� The next governor will face a Transportation Trust Fund that has no resources for new projects; and
� The next governor will face a pension system that spends billions of dollars more than the revenue it receives and that is steadily marching towards insolvency.
To better forestall such practices in the future, this concurrent resolution proposes a constitutional amendment requiring the Governor to present to the Legislature an annual State budget message covering the Governor's recommendations for the two following State fiscal years. This message will contain a conceptual State budget plan covering two State fiscal years.
The message must contain a summary of anticipated revenues, expenditures and fund balances for each State fiscal year. The message must also identify measures the Governor anticipates proposing for the Legislature's consideration in each State fiscal year, which are also anticipated to have a significant impact on the State budget. The message shall contain, if feasible, an analysis of the State's reliance on recurring and nonrecurring revenue for each State fiscal year and how anticipated expenditures, required or otherwise anticipated, compare to such revenue. The two year plan is not to be construed as binding, but rather is a tool to enhance State budgeting practices and provide a greater long-term outlook to the State budget formulation process.
