SENATE BUDGET AND APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

[Second Reprint]

ASSEMBLY, No. 1838

 

STATE OF NEW JERSEY

 

DATED: MAY 8, 1997

 

      The Senate Budget and Appropriations Committee reports without recommendation Assembly Bill No. 1838 (2R) of 1996.

      Assembly Bill No. 1838 (2R) permits a resident of a municipality, county, or school district to perform clerical or professional services previously performed by a part-time or full-time local unit employee who vacated such a position. In return for the service provided, a resident, whom the bill designates as a "resident associate," would receive a voucher to be used to offset the resident associate's property tax liability.

      The resident associate would perform the same services of the prior local government employee at no more than half the rate of pay of that employee and would receive no pension, health, or other fringe benefits. However, federal and State taxes would be withheld by the employer and contributions to the worker's compensation fund would be made. The program would be open to any member of the community who would be properly qualified for the position by education or experience; however, a resident associate may not fill a position that requires the associate to be certified by the State, or a position that is funded through State or federal grant monies. A resident associate may not be related to a municipal, county or school district elected official or employee.

      Finally, the bill exempts from gross income for gross income tax purposes the amounts contributed by an employer on behalf of an employee as a voucher to be used to offset property taxes.

 

FISCAL IMPACT

      This bill has not been certified as requiring a fiscal note since it will not have an impact on State revenues or expenditures.