ASSEMBLY CONCURRENT RESOLUTION No. 216

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED FEBRUARY 14, 2019

 


 

Sponsored by:

Assemblywoman  HOLLY T. SCHEPISI

District 39 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Amends State constitution to allow general appropriation law to continue into following fiscal year with five percent reduction each month it continues.

 

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 General Assembly of the State of New Jersey (the Senate concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is hereby 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. 

     b.    Notwithstanding subparagraph a. of this paragraph, a general appropriation law shall continue in effect after the conclusion of a fiscal year and money shall be drawn in amounts that do not exceed the recurring expenditures previously authorized by the general appropriation law until a new general appropriation law is enacted; provided however, recurring expenditures previously authorized by the general appropriation law shall be reduced by five percent for every full month that the general appropriation law continues in effect.

     c.     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.

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

 

 

 

ALLOWS THE STATE BUDGET TO REMAIN IN EFFECT UNTIL A NEW STATE BUDGET IS ADOPTED

 

YES

     Do you approve amending the State Constitution to allow the annual State budget to remain in effect after the fiscal year is over? The previous fiscal year’s budget would remain in effect until a new budget is adopted. However, the budget would be reduced by five percent for every full month it remains in effect in the next year.

 

 

INTERPRETIVE STATEMENT

 

NO

 

 

 

 

 

 

 

 

 

 

     This amendment would allow the annual State budget to remain in effect after the fiscal year ends until the State adopts a new budget. After the first full month it remains in effect, the budget will be reduced by five percent every month until the State adopts a new budget.

     Currently, the State adopts a budget for a fiscal year from July 1 to June 30. Failure to adopt a new budget prior to the start of a new fiscal year on July 1 could result in a government shutdown.

     This amendment is intended to prevent a government shutdown resulting from the failure to adopt a new budget before July 1.


 

STATEMENT

 

     This constitutional amendment allows the general appropriation law to continue in effect after the conclusion of a fiscal year until the State enacts a new general appropriation law. In the first month the previous fiscal year’s appropriation law remains in effect, expenditures must continue at or below the level authorized by that appropriation law. Every month thereafter that a new appropriation law is not in effect, the expenditures authorized in the previous fiscal year’s appropriation law will be reduced by five percent.

     The amendment is intended to prevent a government shutdown resulting from the failure to enact a new general appropriation law prior to the start of a new fiscal year, without eliminating the incentive to enact a new appropriations law.