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Bill > SCR70
NJ SCR70
NJ SCR70Proposes constitutional amendment to establish a 2 percent cap on annual appropriations increases for certain State government spending.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This constitutional amendment limits the amount that the State can appropriate for certain State government spending in a fiscal year to not more than 2.0 percent above the amount of those appropriations in the prior fiscal year. The exceptions are appropriations: (1) for State aid to school districts, municipalities and counties, (2) of federal funds, (3) for State government payments that may be required to be made by another provision of this Constitution to pension systems that provide for retirement benefits, (4) for State capital construction projects, (5) to pay debt service on voter-approved State bonds and certain appropriation contract bonds, (6) required for purposes of war, to repel invasion, or to suppress insurrection, or to meet extraordinary emergencies caused by disasters or acts of God, and (7) from the Property Tax Relief Fund. This limit will not apply to unused limit amounts from the three previous fiscal years, which may be banked to be appropriated in the next fiscal year. This limit will also not apply to unspent appropriations from the immediately preceding fiscal year, originally appropriated under an annual limit and then reappropriated by law. The annual State appropriations limit may only be exceeded by passage of a fiscal emergency measure by the affirmative vote of two-thirds of the authorized membership of each house of the Legislature.
AI Summary
This joint resolution proposes a constitutional amendment to establish a 2 percent cap on annual state government spending increases. The resolution would limit the total appropriations for each fiscal year to no more than 2 percent above the previous year's appropriations, with several key exceptions. These exceptions include appropriations for state aid to local governments, federal funds, constitutionally mandated pension payments, capital construction projects, debt service on voter-approved bonds, emergency responses (such as war or natural disasters), and money from the Property Tax Relief Fund. The amendment allows for unused appropriation limits from the previous three fiscal years to be "banked" and used in subsequent years, and permits unexpended appropriations from the immediately preceding fiscal year to be reappropriated. Notably, the spending cap can only be exceeded through a fiscal emergency measure, which would require a two-thirds vote in both houses of the legislature. The proposed amendment aims to provide greater fiscal discipline and predictability in state government spending by creating a strict framework for annual appropriations.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SCR70 |
| BillText | https://pub.njleg.gov/Bills/2024/SCR/70_I1.HTM |
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