Bill > S2538

Introduced Session

This bill authorizes the State Auditor to conduct cost benefit analyses of certain programs and initiatives as a means to provide State policymakers with data and information to make better informed policy and budget decisions. Under the bill, the State Auditor is authorized to conduct a cost-benefit analysis of any existing or proposed program or initiative of an accounting agency or an independent authority that is funded or is to be funded by State appropriation or that is established or is to be established for the purpose of awarding tax credits to businesses to stimulate economic development in New Jersey. The bill provides for the State Auditor to conduct a cost-benefit analysis at the direction of the Legislative Services Commission or the presiding officer of either House of the Legislature or at the State Auditor's own initiative, but specifies that for each five-year period following enactment of the bill the State Auditor is to conduct a cost-benefit analysis of at least one existing or proposed program or initiative of each accounting agency and each independent authority that is funded or is to be funded by State appropriation of $1,000,000 or more on an average annual basis or that is established or is to be established for the purpose of awarding tax credits in the aggregate principal sum of $1,000,000 or more on an average annual basis. The bill gives the State Auditor the discretion to determine the scope, define the objectives, and develop the methodology employed in conducting cost-benefit analyses authorized by the bill, but requires each cost benefit analysis to include: -- an analysis of the direct and indirect costs and the tangible and intangible benefits of the existing or proposed program or initiative; -- information identifying any other programs or initiatives that are feasible of accomplishing the goals and objectives of the existing or proposed program or initiative or are capable of being used to create a baseline measurement against which the existing or proposed program or initiative can be compared; -- an analysis of the direct and indirect costs and the tangible and intangible benefits of the other programs or initiatives that are identified as feasible alternatives or capable of being used for baseline measurements; -- a description of the key assumptions used to determine the direct and indirect costs and the tangible and intangible benefits of the existing or proposed program or initiative and the other programs or initiatives that are identified as feasible alternatives or capable of being used for baseline measurements; -- a sensitivity analysis to test how the direct and indirect costs and the tangible and intangible benefits of the existing or proposed program or initiative would differ if the key assumptions were modified; and -- any other information the State Auditor determines to be necessary and appropriate. The bill requires the State Auditor to submit a written report regarding each cost-benefit analysis conducted pursuant to the bill to the Governor and to the Legislature, and to make an electronic copy of the report available to the public through a link prominently displayed on the State Auditor's Internet website. The bill is scheduled to take effect on the first day of the seventh month next following the date of enactment.

AI Summary

Committee Categories

Tony Bucco (R)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 02/08/2024)

Official Document