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Bill > SCR71
NJ SCR71
NJ SCR71Amends Constitution to limit use of nonrecurring revenue in State budget except in certain times of crisis and limits State budget growth.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This concurrent resolution proposes a constitutional amendment to require that the State budget be balanced only with regularly collected recurring revenue, not one-time collections or nonrecurring revenue. In times of crisis or disaster, the Legislature may override this constraint by a two-thirds vote in each house. This concurrent resolution also limits the amount by which the budget may grow. Specifically, no State budget may exceed the previous budget by more than the growth in the Consumer Price Index for the same time period. Any recurring revenue not spent by the State budget is allocated to the Surplus Revenue Fund, which is more commonly referred to as the "rainy day fund." The purpose of this constitutional amendment is to rein-in the practice of using nonrecurring revenues to balance the State budget. This amendment is also meant to contain the growth of the State budget at a rate linked to the growth in the economy. While promoting greater fiscal responsibility in the process of crafting State budgets, this constitutional amendment is also offered to alleviate potential financial burdens in the future. The amendment directs that recurring revenues which go unspent, be deposited into the "rainy day fund." Overall, this proposed amendment to the New Jersey Constitution aims to provide New Jersey with greater long-term financial security by constraining the Legislature's ability to undertake short-sighted budgeting practices.
AI Summary
This concurrent resolution proposes a constitutional amendment to require that the State of New Jersey's budget be balanced exclusively using recurring revenue, effectively prohibiting the use of one-time or nonrecurring revenue sources for budget appropriations. The amendment allows for exceptions during extraordinary circumstances such as war, invasion, insurrection, or disaster, which can be approved by a two-thirds vote in each legislative house. Additionally, the resolution limits state budget growth to no more than the increase in the Consumer Price Index (CPI) for the same fiscal period, using the average CPI for urban consumers in the New York City and Philadelphia areas as reported by the U.S. Department of Labor. Any recurring revenue that remains unspent during a fiscal period will be automatically deposited into the Surplus Revenue Fund, commonly known as the "rainy day fund." The primary objectives of this amendment are to promote fiscal responsibility, prevent short-sighted budgeting practices, and provide long-term financial stability by ensuring that the state's budget growth remains closely tied to economic indicators and that budget appropriations rely on sustainable, predictable revenue streams.
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
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SCR71 |
| BillText | https://pub.njleg.gov/Bills/2024/SCR/71_I1.HTM |
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