S3563

An Act reforming State revenue and expenditure reporting and disclosure requirements, amending P.L.1944, c.112 and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 37 of article 3 of P.L.1944, c.112 (C.52:27B-46) is amended to read as follows:

a. The Director of the Division of Budget and Accounting shall prepare, within 60 days following December 31 and 90 days following the last day in which annual appropriations are available for expenditure during each fiscal year, a complete report showing:

[a.] (1) Balance sheet of all assets and liabilities for all State funds.

[b.] (2) Statement of [General State Fund] accrued revenues as compared with anticipated revenues of the General State Fund, Property Tax Relief Fund, Casino Revenue Fund, and other budgeted State funds.

[c.] (3) Summary report of the General State Fund, Property Tax Relief Fund, Casino Revenue Fund, and other budgeted State funds showing the condition of the appropriations, which shall reflect the original appropriation, supplemental appropriations, appropriated revenue, reappropriations, transfers to and from, allotments from the emergency fund and expenditures made against such appropriations.

[d. Such] (4) Statement of miscellaneous revenues itemized by department, major sources of budgeted federal aid itemized by department, itemized information on income to the General State Fund and other budgeted State revenues from major dedicated and trust funds, sales and use tax collections by industry sector codes, and such other information as [he] the director may deem necessary and proper.

b. [Such statement] The report, certified by the director, shall be transmitted forthwith to the Governor, and shall be and remain a public document on file in the office of the director, subject to inspection by any citizen of the State, who shall have the right to make or obtain copies thereof under such reasonable regulations as the director may prescribe. Copies of [said statement] the report shall be transmitted at the same time to the President of the Senate, the Speaker of the General Assembly, the [chairman] chairs of the respective [appropriation] budget and appropriations committees, the State Treasurer [and], the State Auditor, and the Legislative Budget and Finance Officer. [In addition the director shall prepare a summarized monthly report of the General State Fund no later than 30 days following the end of each month which shall reflect the accrued revenues as compared with anticipated revenues, itemized by revenue source for major taxes, by department for miscellaneous revenues, by department for major sources of Federal aid budgeted and with information on income to the General State Fund from the major dedicated and trust funds. The report shall reflect the condition of the appropriations and other such data which the director shall determine.]

(cf: P.L.1977, c.158, s.1)

2. (New section) a. The Director of the Division of Budget and Accounting shall prepare and make public, not later than the 10th day following the end of each month, a report on the financial condition of the State.

b. The report required by subsection a. of this section shall contain the following:

(1) a detailed, itemized monthly report of revenues accrued to the General State Fund, Property Tax Relief Fund, and Casino Revenue Fund. The report shall reflect accrued revenues for the month compared with anticipated revenues for that month, based on the revenue certification by the Governor, pursuant to Article VIII, Section II, Paragraph 2, of the State Constitution or estimates provided pursuant to section 11 of P.L.1944, c.112 (C.52:27B-20) or any revision thereof, and actual revenues for that same month in the prior fiscal year itemized by:

(i) revenue source for major taxes, including collections of accrued revenue by separate components of each major tax, including, but not limited to, withholdings, direct payments, and estimated payments by taxpayers of gross income tax, sales and use tax collections by industry sector codes, tax refund payments reimbursed, and those payments pending reimbursement. The report shall differentiate by collection method, such as by regular periodic taxpayer returns or through regular taxpayer compliance programs and other special efforts,

(ii) department for miscellaneous revenues,

(iii) department for major sources of federal aid budgeted, and

(iv) income source to the General State Fund and other budgeted revenues from the major dedicated and trust funds.

(2) a detailed, itemized report of expenditures from the General State Fund, Property Tax Relief Fund, Casino Revenue Fund, other budgeted State revenues, other dedicated funds, federal funds, and trust funds. The report shall reflect actual expenditures as compared with anticipated and estimated expenditures for each spending agency in the categories of Direct State Services, Grants-in-Aid, and State Aid for the prior month and shall include the total amount expended by each spending agency during the fiscal year. The report shall account for any changes in spending agency expenditures that differ from the annual appropriations act and all supplements to the annual appropriations act. The report prepared pursuant to this subsection shall be published and made public with the report prepared by the director pursuant to subsection a. of this section.

(3) an analysis of the State’s cash flow including a summary of:

(i) all cash receipts received by the General State Fund, Property Tax Relief Fund, Casino Revenue Fund, and all other dedicated funds, and trust funds, from all governmental and non-governmental sources, including, but not limited to, interfund transfers and short-term notes issued by the State for cash flow management purposes, during the prior month, and an estimate of the cash receipts to be received during the two months next following the prior month;

(ii) all outlays from the General State Fund, Property Tax Relief Fund, Casino Revenue Fund, and all other dedicated funds, and trust funds, for each spending agency, stated separately for the categories of Direct State Services, Grants-in-Aid, and State Aid, including, but not limited to, intergovernmental transfers, debt service, capital expenditures, and amounts credited to the Surplus Revenue Fund, and an estimate of outlays during the two months next following the prior month; and

(iii) the estimated undesignated fund balance in the General State Fund.

c. Copies of the monthly reports prepared pursuant to this section shall be transmitted at the same time to the President of the Senate, the Speaker of the General Assembly, the chairs of the respective appropriation and budget committees, the State Treasurer, the State Auditor, and the Legislative Budget and Finance Officer, and shall be posted on the Department of the Treasury’s Internet website.

3. This act shall take effect immediately.

STATEMENT

This bill improves the disclosure requirements for monthly and annual reporting of State financial information by updating the State’s monthly revenue, expenditure, and cash flow reporting requirements. This bill also requires the Director of the Division of Budget and Accounting (now also known as the Office of Management and Budget) to issue a monthly report of expenditures by each spending agency, such as a State department or board, and a monthly analysis of the State’s cash flow.

The bill enhances the current practice of monthly financial reporting to include the condition and income of all major State funds, including prompt disclosure of the State’s accrued revenues as compared with anticipated revenues, itemized by revenue source for major taxes. Detailed monthly reporting will include collections of accrued revenues by separate components of each major tax, including, but not limited to, withholdings, direct payments, and estimated payments by taxpayers of gross income tax, by collection methods such as by regular periodic taxpayer returns and through taxpayer compliance programs and other special efforts, and tax refund payments and refund applications pending.

Annual revenue reporting will also include a statement of miscellaneous revenues itemized by department, major sources of budgeted federal aid itemized by department, itemized information on income sources to the General State Fund and other budgeted State revenues from major and dedicated trust funds, and sales and use tax collections by industry sector codes. The bill also expands the reporting requirement to include the Casino Revenue Fund and the Property Tax Relief Fund.

The bill also introduces a monthly expenditure reporting component to the State’s financial disclosure requirements. The detailed expenditure summary will provide an accounting of expenditures by spending agencies in the main categories of State appropriations: Direct State Services, Grants-in-Aid, and State Aid. The report will include information on actual expenditures, as compared to anticipated and estimated expenditures for each State spending agency, and the total amount expended during the fiscal year. The report will also account for any changes in expenditures that differ from the annual appropriations act.

This bill requires the preparation of a monthly cash flow analysis. The cash flow report will provide a more comprehensive view of the State’s financial position than is provided in the current monthly revenue report. The cash flow analysis will include information on receipts from all sources, including interfund transfers and short-term borrowing, and outlays, including intergovernmental transfers, capital expenditures, and debt service.

The bill requires the monthly revenue, expenditure, and cash flow reports to be completed no later than the 10th day following the end of each month. The bill requires the monthly reports be transmitted to the President of the Senate, the Speaker of the General Assembly, the chairs of the respective appropriation and budget committees, the State Treasurer, the State Auditor, and the Legislative Budget and Finance Officer and posted online on the official website of the Department of the Treasury.