ACR89

A Concurrent Resolution supplementing the Joint Rules of the Senate and the General Assembly to establish four joint legislative strategic planning committees to make recommendations to both Houses of the Legislature regarding proposals that offer long-term solutions to major issues facing this State.

Whereas, Due to factors that have developed over many years, this State is facing significant challenges concerning the funding of public employee benefits, the effects of State tax policies, the cost, fairness, and effectiveness of education funding, and competitiveness with other states in creating jobs by attracting and retaining business in New Jersey; and

Whereas, These challenges result, in full or in part, from a lack of legislative long-term planning and failure to consider individual policies and legislative acts in the context of strategic goals for the betterment of the State; and

Whereas, It is the responsibility of the Legislature to address these challenges through the development of sound long-term policies; and

Whereas, The Legislature’s standard practices tend to favor a largely piecemeal approach to policymaking, and the political atmosphere often creates difficulties in reaching compromise and developing long-term solutions to complex problems; and

Whereas, There is a need, therefore, for the Legislature to create four joint legislative strategic planning committees to study these challenges, examine the long-term outlook for New Jersey in each such area, and make recommendations for legislation or other policy changes designed to provide relief for taxpayers and improve the long-term prospects for New Jersey’s attractiveness and affordability as a place for individuals, families and businesses to remain or relocate to; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

The following Joint Rules are adopted:

1. There are created four joint legislative strategic planning committees. Each committee shall consist of nine members: two members of the Senate appointed by the President thereof; two members of the Senate appointed by the Minority Leader thereof, two members of the General Assembly appointed by the Speaker thereof; two members of the General Assembly appointed by the Minority Leader thereof; and one member who shall be a former Governor of this State appointed jointly by the President and the Speaker. Only a former Governor who was elected to that office shall be eligible for appointment to a committee pursuant to this section. Of the former Governors appointed to the four committees, not more than two shall be of the same political party. If a former Governor is unavailable for an appointment, a committee shall consist of the eight appointed legislative members. Legislative members shall be of the same political party as the presiding officer or leader making the appointment. A member may be removed from a committee for cause by the appointing officer, except that if any member is so removed, the appointing officer shall forthwith appoint another member in the same manner that the original appointment was made. The President and the Speaker shall each designate one appointee to a committee as co-chairperson of that committee. The co-chairs shall be members of different political parties.

2. Each committee shall meet at the call of its co-chairpersons. The committees may review the functions, duties, operations and programs of agencies of the State and its political subdivisions relevant to the areas of review as set forth herein, as well as the relevant governing statutes, regulations, ordinances, resolutions, policies, and orders. As part of that review, the committees may examine pending and proposed bills and resolutions, as well as relevant reports and testimony. In addition, each committee shall endeavor to invite non-partisan experts in fields related to the committee’s subject areas to testify before the committee and to provide other appropriate assistance to the committee. Each committee shall prepare reports of its deliberations and recommendations at such intervals as the committee determines to be appropriate, but not less often than annually unless an extension is approved jointly by the President of the Senate and the Speaker of the General Assembly. Each report shall be transmitted to the Senate and the General Assembly and shall include, but not be limited to, any proposals that the committee may wish to recommend for constitutional amendments or legislation to bring about reform.

3. There is created the Joint Legislative Strategic Planning Committee on Public Employee Benefits. It shall be the duty of the committee to examine ways to lower costs to taxpayers, preserve the goal of attracting and retaining qualified employees, and provide a level of benefits to complement salary that provides an appropriate compensation package in light of national trends in the public and private sectors.

The committee shall specifically examine the following:

the existing unfunded liability of the State-administered retirement systems and the projected cost of the State’s employer contributions in dollars and as a percentage of projected State revenue over the next 30 years;

the cost to public employers of providing health care benefits to employees and retirees;

a comparison of public pension and health benefits in New Jersey to those of large private-sector New Jersey employers, including the cost of the benefits and the relative share of the costs borne by the employee and employer;

the benefits and disadvantages of transitioning from a defined benefit system to a defined contribution system, with recommendations for the option deemed best for balancing cost, the employee’s ability to maximize returns and minimize risk, and the ability of public employers to attract and retain qualified employees;

the options available in the selection of health benefit plans, for both public employers and employees, and whether there is a sufficiently varied range of choices and appropriate incentives to choose lower cost plans; and

the findings and recommendations of the New Jersey Pension and Health Benefit Study Commission established by Executive Order No. 161 (Christie) of 2014.

4. There is created the Joint Legislative Strategic Planning Committee on the Effects of State Tax Policy. It shall be the duty of the committee to examine the revenue generated by State taxes and any other perceived benefit, as compared to the economic or other impact of those taxes, the fairness and affordability to the taxpayer, predictability of the revenue stream for budgeting purposes, and the relative efficiency of methods of collecting revenue through each particular tax.

The committee shall specifically examine the following:

the effect of the Sales and Use Tax, Gross Income Tax, Corporation Business Tax, estate tax, inheritance tax, and realty transfer fee on individuals and small businesses, particularly on decisions to move out of New Jersey and to close businesses;

ways to reduce the overall burden on taxpayers; and

possible ways to reform the tax system to minimize compliance costs and inefficiency in the collection process.

5. There is created the Joint Legislative Strategic Planning Committee on Public Education Funding and Reform. It shall be the duty of the committee to examine the existing school funding formula and annual appropriations for education funding since the adoption of that formula, the budgeting and spending practices of school districts, educational outcomes and their relationship to funding levels and programs, the meaning of the “thorough and efficient” clause of the State Constitution, the role of the New Jersey Supreme Court in determining education funding policy and the impact of the court’s decisions with regard to educational outcomes, and the results of various education reform initiatives including, but not limited to, school choice and charter schools, and teacher tenure and evaluation reform.

The committee shall specifically examine the following:

the cost to the State of aid to school districts over the next 30 years under the current school funding formula;

the relationship between the current school funding formula and educational outcomes;

a comparison of the preceding two items with the experiences of others states;

options for changes to the system of education funding in this State, including possible changes that may necessitate amending the State Constitution, in order to provide a more thorough and efficient funding system that will result in greater fairness in the allocation of aid and less inequality between the recipients of higher and lower amounts of aid per pupil, and make funding related to educational outcomes; and

programs, policies, and approaches that are not necessarily related to funding but which may improve educational outcomes.

6. There is created the Joint Legislative Strategic Planning Committee on Jobs and Economic Development. It shall be the duty of the committee to examine all factors contributing to the State’s attractiveness as a place in which to establish, maintain and expand a business, with specific attention to differing needs of small businesses and larger ones.

The committee shall specifically examine the following:

incentive programs currently offered by the State;

the marketing and promotion of incentive programs and other benefits of locating or expanding commercial operations in the State;

taxes on businesses including, but not limited to, the corporation business tax and the gross income tax;

other taxes that may impact economic competitiveness with other states, including, but not limited to, the sales and use tax, excise taxes and property taxes; and

other State policies with a substantial direct or indirect impact on businesses, including but not limited to administrative regulations, permitting processes, energy policy, and education and workforce training.

7. Each joint legislative strategic planning committee shall organize as soon as possible after the appointment of its members.

8. Five members of a joint legislative strategic planning committee shall constitute a quorum for the transaction of any business. Official committee action shall be by a majority vote of the members serving on the committee.

9. The joint legislative strategic planning committees shall be entitled to call to their assistance and avail themselves of the services of such employees of any State, county or municipal department, board, bureau, commission, agency or authority as they may deem necessary or desirable, and as may be available for their purposes.

10. Any member or members of a joint legislative strategic planning committee who do not concur with the report of the committee may issue a minority statement that shall be included in the transmitted report of the committee.

11. All public meetings shall be recorded and transcribed, and, when feasible, audio and video of public meetings shall be made available on the State Legislature’s website. All meetings at which official committee action is taken shall be open to the public. The chairpersons of a joint legislative strategic planning committee shall notify the Office of Legislative Services, for posting and distribution to the public, of the time, place, and agenda of each meeting of the committee. The notice shall be distributed to the public at least five calendar days prior to the meeting, except that the presiding officers, acting jointly, may waive the five-day notice requirement, provided that in no case shall less than 48 hours notice of a meeting be given.

12. To the extent that the jurisdiction or recommendations of joint committees may overlap or conflict, the co-chairpersons of those committees shall consult with each other to coordinate and resolve differences.

13. This concurrent resolution shall take effect immediately.

STATEMENT

This concurrent resolution would establish four joint legislative committees to review and formulate proposals that address major long-term issues facing this State. The committees are the Joint Legislative Strategic Planning Committee on Public Employee Benefits, Joint Legislative Strategic Planning Committee on the Effects of State Tax Policy, Joint Legislative Strategic Planning Committee on Public Education Funding and Reform, and Joint Legislative Strategic Planning Committee on Jobs and Economic Development. The committees will review and formulate proposals within their respective subject areas as set forth in this resolution, and make recommendations to both Houses of the Legislature.

Due to factors that have developed over many years, this State is facing significant challenges in these areas. The Legislature’s standard practices tend to favor a largely piecemeal approach to policymaking, and the political atmosphere often creates difficulties in reaching compromise and developing long-term solutions to complex problems. These committees will provide a specific venue for the Legislature to examine the long-term outlook for New Jersey in each area, and make recommendations for legislation or other policy changes designed to provide relief for taxpayers and improve the long-term prospects for New Jersey’s attractiveness and affordability as a place for individuals, families and businesses to remain or relocate to.