ASSEMBLY, No. 1296

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman GREENWALD

An Act establishing limits on certain State appropriations.

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

    1. Notwithstanding the provisions of any other law to the contrary, the amount appropriated from the State General Fund, the "Casino Control Fund" established pursuant to section 143 of P.L.1977, c.110 (C.5:12-143), the "Gubernatorial Elections Fund" established pursuant to N.J.S.54A:9-25.1 and the Property Tax Relief Fund established pursuant to N.J.S.54A:9-25 of P.L.1976 by the annual appropriations acts for the State fiscal years ending June 30, 1996, June 30, 1997 and June 30, 1998 shall not exceed the total amount reported as the original and supplemental appropriations for those funds in the Schedule of Appropriations in the State of New Jersey Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1994; provided however, that amounts appropriated from those funds as State aid to local governments and school districts by the annual appropriations acts for the State fiscal years ending June 30, 1996, June 30, 1997 and June 30, 1998 shall not be less than the amounts so appropriated pursuant to P.L.1993, c.155, the annual appropriations act for the fiscal year ending June 30, 1994.

    2. This act shall take effect immediately.

STATEMENT

    This bill establishes a three year spending freeze by limiting the amount of State funds that can be appropriated in the annual appropriations act. The bill limits State General Fund, Casino Control Fund, Gubernatorial Elections Fund and Property Tax Relief Fund appropriations in the annual appropriations acts for fiscal years 1996, 1997 and 1998 to the amounts appropriated for fiscal year 1994, as reported in the New Jersey Comprehensive Annual Financial Report for fiscal year 1994. The Comprehensive Annual Financial Report presents the financial position and operating results of the State under generally accepted accounting principles and traditional budgetary presentations. The appropriations act spending limits set by this bill will rein in State expenditures.

    This bill does not freeze appropriations from the Casino Revenue Fund in the annual appropriations acts for fiscal years 1996, 1997 and 1998. The Casino Revenue fund is used exclusively for reductions in property taxes, rent and utility bills of senior citizens and disable residents of the State.

    This bill protects property tax payers by establishing a minimum level of property tax relief equal to the State aid to local governments and school districts appropriated in the FY1994 annual appropriations act. This protection ensures that the freeze in State total spending will not be achieved by shifting State revenue away from property tax relief.

Limits certain annual appropriations act spending authorization.