Bill

Bill > SCR41


NJ SCR41

NJ SCR41
Proposes constitutional amendment to establish a 2 percent cap on annual appropriations increases for certain State government spending.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 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 concurrent resolution proposes a constitutional amendment to limit annual increases in certain State government spending to a maximum of 2.0 percent above the previous fiscal year's appropriations. This limit, however, has several significant exceptions, including appropriations for State aid to schools, municipalities, and counties; federal funds; payments to pension systems; State capital construction projects; debt service on voter-approved bonds and certain contract bonds; spending required for war, invasion, insurrection, or extraordinary emergencies caused by disasters or acts of God; and funds from the Property Tax Relief Fund. The resolution also allows for "banking" unused appropriation limits from the previous three fiscal years and reappropriating unspent funds from the immediately preceding year without counting them against the new limit. Importantly, the annual limit can only be exceeded if the Legislature passes a "fiscal emergency measure" with a two-thirds affirmative vote in both houses.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/13/2026)

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