ACR30

A Concurrent Resolution proposing to amend Article VIII, Section II of the Constitution of the State of New Jersey by adding a new paragraph thereto.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

5. No general appropriation law or other law appropriating money for any State purpose shall be enacted if the appropriation contained therein, together with all prior appropriations made for the same fiscal period, shall exceed the maximum appropriations permitted pursuant to law enacted as prescribed in this [section] paragraph. The Legislature shall enact a statute prescribing the maximum appropriations which may be made for State purposes in one fiscal period. Any such statute shall base the maximum appropriations on the total appropriations made for the immediately preceding fiscal period, after adjustments for appropriations for purposes not subject to limitations, and shall provide a formula for calculating the maximum appropriations allowed that reflects the change in personal income of residents of this State, over such period as may be determined by the Legislature, expressed as a percentage. Any such statute shall not limit the appropriations to be made from the proceeds of any tax or other revenue the expenditure of which is provided for otherwise in this Constitution, nor appropriations required for the payment of interest or principal on any general obligation bond issue approved heretofore or hereafter by the legally qualified voters of this State at a general election, nor appropriations made for payments as State aid to, or on behalf of, any county, municipality, school district, or other political subdivision or instrumentality of the State. Any such statute may provide for an exclusion from the limit on appropriations for funds received or reasonably anticipated to be received by the State from thefederal government, or for any program costs imposed on the State by the federal government, or for capital construction projects, or for lease or lease purchase agreements, or for the payments in support of any retirement plan or medical benefits for State employees, or for the payment of the expenses of regulating the operation of casinos in Atlantic City from the proceeds of any fees or other charges imposed in connection with the operating of those casinos, or the funding of elections from any special funds established by law the revenues for which are derived from taxpayers' designation of a portion of their income tax, all as may be found necessary or appropriate by the Legislature.

The limit on appropriations provided for hereinabove may be exceeded only if such increase is submitted to the people of this State in the form of a referendum at a general election held immediately prior to or during any fiscal period for which such increase is proposed and approved by a majority of the legally qualified voters of the State voting thereon.

The provisions of this paragraph shall apply to appropriations made in the fiscal period next following its approval by the people pursuant to Article IX, paragraph 1 of this Constitution and to each fiscal period thereafter, except that the Legislature shall enact the statute required hereinabove so to apply to appropriations made for the fiscal period next following the approval of this paragraph by the people pursuant to Article IX, paragraph 1 of this Constitution.

2. When this proposed amendment to the Constitution is finally agreed to, pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after such final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate and the Speaker of the General Assembly and the Secretary of State, not less than three months prior to said general election.

3. This proposed amendment to the Constitution shall be submitted to the people at said election in the following manner and form:

There shall be printed on each official ballot to be used at such general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (x), plus (+) or check () in the square opposite the word "Yes."

If you are opposed thereto make a cross (x), plus (+) or check () in the square opposite the word "No."

		LIMITATIONS ON STATE APPROPRIATIONS
	YES	Do you approve the amendment to Article VIII, Section II of the Constitution of the State of New Jersey, requiring the Legislature to enact a law limiting the percentage increase in State spending for any fiscal period to a percentage equal to the percentage change in personal income of the residents of this State, with certain exclusions, which limits could be exceeded only by referendum approved by a majority of the voters of this State voting thereon?
		INTERPRETIVE STATEMENT
	NO	This amendment to the Constitution of the State of New Jersey would require the enactment of a law which would limit, or "cap," the amount of increases in appropriations made by the State Legislature to a percentage which reflects the increase in the personal income of the residents of this State. The limit would not apply to State aid appropriations, the Property Tax Relief Fund or the Casino Revenue Fund, nor to payments due on State debt. The Legislature would be permitted to exclude from the limit the use of federal funds or costs imposed on the State by the federal government, capital expenditures including, leases, costs associated with State employee pensions or medical benefits, expenses of regulating the operation of gambling casinos which are paid out of the proceeds of fees imposed in connection with operating casinos and the costs of funding elections out of any special fund the revenues for which are derived from taxpayers designation of a portion of their income tax.The limit may be exceeded only if approved by the voters on referendum.

This concurrent resolution proposes an amendment to the Constitution of the State of New Jersey which would require the Legislature to enact a statute limiting the increases in total appropriations made by the Legislature in any fiscal period to an amount based on the appropriation for the immediately preceding period and increased by a percentage that reflects the percentage change in personal income of the residents of this State.

Specific exemptions from this limit are provided for all State aid appropriations required to pay principal and interest on State general obligation bonds. The Legislature is permitted, but not required, to provide for exclusions from the limit for federal funds, for costs imposed on this State by the federal government, for appropriations for capital construction projects, for lease and lease purchase agreements, for costs associated with retirement plans or medical benefits for State employees, for appropriations to the Casino Control Fund, or for appropriations to the Gubernatorial Elections Fund.

The limit on increased appropriations can be exceeded only if approved by referendum submitted to and approved by the voters of this State.

The enactment of a law imposing the limits on increases in appropriations is mandatory under this proposal, and would be applicable to the first fiscal period and each fiscal period thereafter following the adoption of this amendment to the Constitution.