ASSEMBLY, No. 2719

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 3, 1997

 

 

By Assemblymen KELLY, KRAMER

and Assemblywoman Wright

 

 

An Act concerning the "State Judicial Unification Act" and amending and supplementing P.L.1993, c.275.

 

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

 

    1. Section 6 of P.L.1993, c.275 (C.2B:10-6) is amended to read as follows:

    6. a. [In] Except as provided in subsection e., in local fiscal years 1995, 1996 and 1997, each county shall pay a share of its base year amount as determined by the director based on the following schedule:

    (1) 1995...... 87.5% of the base year amount;

    (2) 1996...... 62.5% of the base year amount;

    (3) 1997...... 50.0% of the base year amount.

    b. [Each] Except as provided in subsection e., each county shall pay the respective amounts established in subsection a. to the State Treasurer on the following schedule:

    (1) 1995....... On May 15, 50.0% of the base year

                                  amount, and on October 1, 37.5% of

                                  the base year amount;

    (2) 1996....... On May 15, 37.5% of the base year

                                  amount, and on October 1, 25.0% of

                                  the base year amount;

    (3) 1997....... On May 15, 25.0% of the base year

                                  amount, and on October 1, 25.0% of

                                  the base year amount.

    c. In local budget year 1998 and thereafter, no county shall be required to pay judicial costs or probation costs unless a county elects to proceed under subsection e. of this section in which case the county shall not be required to pay judicial costs or probation costs in local budget year 1999 and thereafter.

    d. No county shall be required to pay the employer pension contribution on behalf of any employee who becomes an employee of the State under this act after the date the person becomes an employee of the State. However, notwithstanding the provisions of subsections b. and c. above, it shall continue to be the responsibility of each county to pay any additional liability for any employee who would have become an employee of the State under this act but who retired and received a benefit under P.L.1993, c.138 as provided under that act, and the liability for late enrollment of an employee in the Public Employees' Retirement System, whose date of compulsory enrollment is prior to the date the person becomes an employee of the State under this act, as provided under section 48 of P.L.1971, c.213 (C.43:15A-7.1).

    e. Notwithstanding the provisions of subsections a. and b. of this section, a county may elect in local fiscal year 1997 to pay its share of its base year amount in 1997 and 1998 as follows: in 1997 25.0% of its base year amount on May 15, 1997 and in 1998 25.0% of its base year amount on May 15, 1998.

(cf: P.L.1993, c.275, s.6)

 

    2. (New section) The Director of the Division of Local Government Services in the Department of Community Affairs shall implement the schedule of payments and shall direct the manner by which each county shall make payment to the State pursuant to the provisions of subsection e. of section 6 of P.L.1993, c.275 (C.2B:10-6).

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides an opportunity for property taxpayers to benefit from the difference between the State fiscal year budget cycle and the county calendar year budget cycle. This bill would permit counties to elect to change certain dates on which counties are required to pay over monies which are percentages of a base year amount defined in the "State Judicial Unification Act" to the State. Current law requires a $120 million payment from counties in 1997, 25 % of the base year amount on May 15, 1997 and 25% of the base year amount on October 1, 1997. This bill would permit the counties to provide a $60 million payment on May 15, 1997 (25% of the base year amount as currently required) and another payment of $60 million on May 15, 1998 rather than on October 1, 1997 (as currently required in subsection b. of the section). The State's General Fund would still receive the $120 million anticipated. Because county budgets are on a calendar basis, this deferral would provide an additional $60 million in property tax relief during tax year 1997. The effect of this legislation would be to permit the counties to accelerate the property tax benefit into calendar year 1997 by allowing the counties to retain use of $60 million until May 15, 1998 if they choose to proceed under this bill.

 

 

                            

Amends the "State Judicial Unification Act."