Bill Text: NJ SCR128 | 2026-2027 | Regular Session | Introduced

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Bill Title: Amends State Constitution to prohibit State appropriations to non-State agencies unless based upon competitive criteria or statutory process.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced) 2026-03-12 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [SCR128 Detail]

Download: New_Jersey-2026-SCR128-Introduced.html

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SENATE CONCURRENT RESOLUTION No. 128

STATE OF NEW JERSEY

222nd LEGISLATURE

 

INTRODUCED MARCH 12, 2026

 

 

Sponsored by:

Senator  MICHAEL L. TESTA, JR.

District 1 (Atlantic, Cape May and Cumberland)

 

 

 

 

SYNOPSIS

     Amends State Constitution to prohibit State appropriations to non-State agencies unless based upon competitive criteria or statutory process.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 2 of the Constitution of the State of New Jersey.

 

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

 

     1.    The following amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     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 general appropriation law or other law appropriating money for any State purpose shall be enacted if the appropriation 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. 

     b.  (1) Except as otherwise provided in this subparagraph, no moneys shall be appropriated on a discretionary basis, outside of a formula or process established by law, for use by, or distribution to, a non-State agency, unless the law in which the appropriation is made sets forth:

     (a) the specific purpose of the appropriation, of which no amount shall be distributed to a non-State agency specifically named in the law; and

     (b) the manner in which the moneys shall be distributed to one or more non-State agencies, which distribution shall be made on a competitive basis, pursuant to programmatic, merit-based criteria, or in accordance with a formula or process established by law.

     (2) As used in this subparagraph:

     "Non-State agency" means any entity not defined as a State agency in sub-subparagraph, including, but not limited to, any political subdivision of the State or combination of political subdivisions; any division, board, bureau, office, commission, or other instrumentality, or agency created by a political subdivision or combination of political subdivisions; private institutions of higher education, or any other non-governmental agency.

     "State agency" means any of the principal departments in the Executive Branch of State government, and any division, bureau, office, commission, or other instrumentality within or created by such department; the Legislature of the State, and any office, board, bureau, or commission created by the Legislative Branch; the Judicial branch of State government; and any independent State authority, commission, instrumentality, or agency, including any public institution of higher education.

(cf: Art.VIII, Sec.II, par. 2, effective Jan. 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 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:

 

		CONSTITUTIONAL AMENDMENT TO PREVENT DIRECT APPROPRIATION OF STATE FUINDS TO NON-STATE AGENCIES
	YES	Do you approve amending the State Constitution to prevent the direct appropriation of State funds to non-State agencies?     The amendment forbids discretionary appropriations to non-State agencies, unless certain conditions are met as set forth in the law making the appropriation.    The amendment requires a law making an appropriation to a non-State agency to explain the specific purpose of the appropriation.  The law is to set forth a competitive or merit-based distribution or a formula or process.  No funds may be distributed to a non-State agency that is named in the law.
		INTERPRETIVE STATEMENT
	NO	The amendment prohibits certain direct appropriations of State funds to non-State agencies.    This amendment limits what can be provided in a law to appropriate discretionary funds to non-State agencies.  The law would be required to explain the specific purpose of the appropriation.  The funds may not be paid to a non-State agency that is specifically named in the law.    The law would also be required to set forth the process by which the funds are to be distributed to eligible non-State agencies.  The process would be based on competitive, merit-based criteria or based on a formula or process, set forth in law.     This amendment does not apply to appropriations made to support the operations of a State agency.    Non-State agencies are counties, municipalities, school districts, non-profit organizations, private universities, or any other non-governmental agency.

 

STATEMENT

 

     This proposed amendment to the New Jersey Constitution would prohibit the State from directly appropriating funds to non-State agencies on a discretionary basis unless the funding is distributed on a competitive basis or in accordance with a formula or process established by law. 

     Under the constitutional amendment, the State may not appropriate State funds directly to a non-State agency on a discretionary basis, outside a formula or process established by law, unless certain conditions are met in the law appropriating the funds.  Specifically, any law appropriating funds to a non-State agency would be required to set forth the specific purpose of the appropriation and the manner in which the appropriation would be distributed to one or more non-State agencies. 

     The amendment also requires that any funds appropriated for non-State agencies to be distributed on a competitive basis, pursuant to programmatic, merit-based criteria, or based on a formula or process established by law.  The amendment also provides that the recipient of the funds may not be specifically named in the law making the appropriation.

     For purposes of this amendment, a "State agency" includes any department or agency within any branch of State government, including any division or other agency therein.  A "State agency" also includes any independent State authority, commission, instrumentality, or agency, including any public institution of higher education; the State Legislature, any office, board, bureau, or commission created by the Legislative Branch, and the Judicial branch of State government.

     The amendment defines a "non-State agency" as any entity that is not a State agency, including political subdivisions of the State, any combination of political subdivisions of the State, instrumentalities of political subdivisions, such as local authorities and commissions, private institutions of higher education, or any other non-governmental agency.  Political subdivisions include, but are not limited to, counties, municipalities, and school districts.

     This constitutional amendment is intended to address the lack of public transparency and oversight concerning the appropriation of State funds for certain non-State purposes.  These appropriations are often added to the annual appropriations bill as special, ear-marked funds, for the sole benefit of specifically designated entities, including local governmental units, school districts, and non-profit organizations, without public oversight concerning the actual needs for such funding.

     By preventing the Legislature from appropriating funds directly to specifically named recipients, this constitutional amendment will ensure that public funds are distributed under general, programmatic, merit-based criteria, based on the purpose for which the appropriation was made, not according to unannounced arrangements known only by certain members of the Legislature and the recipients of the State funds and without public input.