ASSEMBLY, No. 1936

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 6, 1996

 

 

By Assemblyman ROMANO

 

 

An Act concerning the New Jersey Commission on Capital Budgeting and Planning and amending P.L.1975, c.208.

 

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

 

    1. Section 1 of P.L.1975, c.208 (C.52:9S-1) is amended to read as follows:

    1. As used in this act, the following words and terms shall have the following meanings, unless the context shall indicate another or different meaning or intent:

    a. "Capital project" means any undertaking which is to be financed or funded or is proposed to be financed or funded by the issuance of bonds, notes or other evidences of indebtedness of the State or any public authority thereof; or any undertaking which is to be financed or funded or is requested to be financed or funded by an appropriation in the annual budget, where the expenditure therefor is, by statute, or under standards as they may be prescribed from time to time by the Department of the Treasury, a capital expenditure.

    b. "Commission" means the New Jersey Commission on Capital Budgeting and Planning created by section 2 of this act;

    c. "Plan" means the State Capital Improvement Plan provided for by subsection a. of section 3. of this act.

    d. "State agency" means an executive or administrative department, office, public authority or other instrumentality of State Government.

    e. "Bonds" means bonds, notes, capital leases, lease purchases, installment obligations, or other debt obligations.

    f. "Debt and debt service" means the amount of outstanding principal and interest payments due on bonds, or estimated to become due on bonds, as appropriate.

(cf: P.L.1975, c. 208, s. 1)

 

    2. Section 3 of P.L.1975, c.208 (C.52:9S-3) is amended to read as follows:

    3. a. The commission shall each year prepare a State Capital Improvement Plan containing its proposals for State spending for capital projects, which shall be consistent with the goals and provisions of the State Development and Redevelopment Plan adopted by the State Planning Commission and shall be prepared after consultation with the New Jersey Council of Economic Advisors, created pursuant to P.L.1993, c.149 (C.52:9H-34 et seq.). Copies of the plan shall be submitted to the Governor and the Legislature no later than December 1 of each year. The plan shall provide:

    (1) A detailed list of all capital projects of the State which the commission recommends be undertaken or continued by any State agency in the next three fiscal years, together with information as to the effect of such capital projects on future operating expenses of the State, and with recommendations as to the priority of such capital projects and the means of funding them;

    (2) The forecasts of the commission as to the requirements for capital projects of State agencies for the four fiscal years next following such three fiscal years and for such additional periods, if any, as may be necessary or desirable for adequate presentation of particular capital projects, and a schedule for the planning and implementation or construction of such capital projects;

    (3) A schedule for the next fiscal year of recommended appropriations of bond funds from issues of bonds previously authorized;

    (4) A review of capital projects which have recently been implemented or completed or are in process of implementation or completion;

    (5) Recommendations as to the maintenance of physical properties and equipment of State agencies;

    (6) Recommendations which the commission deems appropriate as to the use of properties reported in subsection c. of this section;

    (7) A report on the State's overall debt and the overall debt of local entities and school districts within the State as reported, pursuant to section 4 of P.L. , c. (pending before the Legislature as Assembly Bill, No. of 1996). This report shall include information on the outstanding [general obligation] debt and debt service costs for the prior fiscal year, the current fiscal year, and the estimated amount for the subsequent five fiscal years [. In addition, the report shall provide similar information on capital leases and installment obligations] ;

    (8) An assessment of the [State's] ability of the State, local entities and school districts to increase [its] their overall debt and a recommendation on the amount of any such increase. In developing this assessment and recommendation, the commission shall consider those criteria used by municipal securities rating services in rating governmental obligations; and

    (9) Such other information as the commission deems relevant to the foregoing matters.

    b. Each State agency shall no later than August 15 of each year provide the commission with:

    (1) A detailed list of capital projects which each State agency seeks to undertake or continue for its purposes in the next three fiscal years, together with information as to the effect of such capital projects on future operating expenses of the State, and with such relevant supporting data as the commission requests;

    (2) Forecasts as to the requirements for capital projects of such agency for the four fiscal years next following such three fiscal years and for such additional periods, if any, as may be necessary or desirable for adequate presentation of particular capital projects, and a schedule for the planning and implementation or construction of such capital projects;

    (3) A schedule for the next fiscal year of requested appropriations of bond funds from issues of bonds previously authorized;

    (4) A report on capital projects which have recently been implemented or completed or are in process of implementation or completion;

    (5) A report as to the maintenance of its physical properties and capital equipment;

    (6) Such other information as the commission may request.

    c. Each State agency shall, when requested, provide the commission with supplemental information in addition to that to be available to the commission under the computerized record keeping of the Department of the Treasury, Bureau of Real Property Management, concerning any real property owned or leased by the agency including its current or future availability for other State uses.

    d. A copy of the plan shall also be forwarded to the Division of Budget and Accounting each year upon its completion, and the portion of the plan relating to the first fiscal year thereof shall, to the extent it treats of capital appropriations in the annual budget, constitute the recommendations of the commission with respect to such capital appropriations in the budget for the next fiscal year.

(cf: P.L.1995, c.398, s.2)

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill amends the law which created the New Jersey Commission on Capital Budgeting and Planning. It expands the commission's duties to require that the State Capital Improvement Plan provide a report on the overall debt of local entities and school districts within the State, based on data received from the State Treasurer. This report shall include information on the outstanding debt and debt service costs for the prior fiscal year, the current fiscal year, and the estimated amount for the subsequent five fiscal years.

    The bill also expands the commission's duties to require that the State Capital Improvement Plan provide an assessment of the ability of the State, local entities and school districts to increase their overall debt and a recommendation on the amount of any such increase.

    Enactment of these changes would require the commission to consider all debt, including such non-capital debt as incurred by local authorities, because the total level of debt or debt service may have an impact on future capital financing.

 

 

                             

Expands powers and duties of Commission on Capital Budgeting and Planning.