LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY, No. 1936

STATE OF NEW JERSEY

DATED June 5, 1996

      Assembly Bill No. 1936 of 1996 requires the Commission on Capital Budgeting and Planning to include in its annual Capital Improvement Plan a report on the overall debt of local governments and school districts within the State. In addition, the plan is to provide an assessment of the ability of the State, local governments and school districts to increase their overall debt and a recommendation on the amount of any such increase.

      The Office of Legislative Services notes that the State Treasurer, pursuant to a companion bill, Assembly Bill No. 1894 of 1996, is to obtain the needed data on overall debt, prepare a report presenting the debt and debt service costs, and to submit the report to the commission. In turn, the commission would review the Treasurer's report and then make its assessment and recommendation concerning future debt levels of the State, local governments and school districts.

      Since the staff for the commission is also provided by the Department of the Treasury, an additional person may be requested for placement somewhere within the Department of the Treasury to help obtain, process, assess, and make recommendations concerning the relevant, appropriate levels of debt. However, the perceived need for additional staff for the Department of the Treasury must await confirmation and substantiation by the Treasurer.

      The legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.