SENATE, No. 857
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 26, 1996
By Senator BUBBA
An Act to provide certain county executives with the power to disapprove or reduce individual budget appropriations and to approve certain public contracts.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature hereby finds, determines and declares that:
a. significant debt burden on the part of counties saps the economic strength of those units of government;
b. in those counties which are relatively poor, the resources required to pay off accumulated debt may compromise the ability of those units of government to meet the ongoing service demands of the public without prudent and accountable financial management;
c. given the relatively slow pace of economic recovery in New Jersey, it is unlikely that economic growth will help those counties struggling to meet these crushing economic demands to meet those burdens in the foreseeable future;
d. the structure of the existing "county executive plan" form of government set forth in the "Optional County Charter Law," P.L.1972, c.154 (C.40:41A-1 et seq.), in which executive and legislative powers are separated, is conducive for modification in order to determine if increasing the accountability of elected officials for spending and public contracting decisions will benefit property taxpayers;
e. it is appropriate for the Legislature to experiment with modifications to the "county executive plan" form of government in order to determine whether vesting greater accountability in the county executive for budget decision making and public contracting will be effective in helping a county meet its outstanding debt obligations without seriously compromising its ability to perform necessary services;
f. as the county with the highest equalized tax rate for county purposes combined with the highest debt service per capita among the counties governed by the "county executive plan" form of government, Essex county provides a fitting laboratory for a test, on a temporary basis, of modifications to the statutory powers and duties of a county executive that are designed to achieve greater fiscal prudence on the part of county government.
2. Upon adoption of the budget pursuant to N.J.S.40A:4-10 by the Essex county board of chosen freeholders, the clerk of the board shall, within three business days, present the adopted budget to the Essex county executive for review. The Essex county executive may disapprove, or may reduce, any item of appropriation in the annual budget, other than items of appropriation required for payment of debt service, while approving other items of appropriation.
Based on any objections or reductions made, the county executive shall also adjust the amount to be collected by property taxes to reflect those objections or reductions. In the case of a disapproval or reduction, the Essex county executive shall append to the budget a statement of each item which has been disapproved or reduced, and, except as otherwise provided in this section, each such item shall not take effect or shall take effect as reduced, as appropriate. The budget shall be returned to the board of chosen freeholders no later than five business days following receipt thereof by the county executive.
If, not later than five business days following receipt of the budget from the county executive pursuant to this section, the board of chosen freeholders reapproves an item of appropriation as originally approved by the board, and adjusts the amount to be collected by property taxes accordingly, by a vote of not less than two-thirds of the full membership of the board, the item as originally approved and amounts to be collected by property taxes shall become part of the final budget, notwithstanding the disapproval of the county executive. The budget shall then be transmitted to the Director of the Division of Local Government Services pursuant to N.J.S.40A:4-10.
3. Within three business days of the passage by the Essex county board of chosen freeholders of any resolution approving a contract involving an expenditure of over $10,000, the clerk of the board shall present the resolution to the Essex county executive for review. The executive may approve or disapprove any such resolution and shall return the resolution to the board of chosen freeholders within 10 business days of passage together with a written statement of objections to the resolution in the event of disapproval. If the executive takes no action within 10 business days of passage, the resolution shall be deemed to be approved. The board may override an executive's disapproval by a two-thirds vote of the full membership of the board and the resolution shall thereupon take effect.
4. Within six months after the third county budget submitted to the county executive pursuant to this act, the Director of the Division of Local Government Services in the Department of Community Affairs shall submit a report to the Governor, the Senate, the General Assembly, the Essex county board of chosen freeholders, and the Essex county executive evaluating the experience of Essex county with the powers granted to the executive pursuant to this act and recommending whether the test period should be extended or if these powers should be granted to other county executives.
5. This act shall take effect immediately and shall expire upon the submission of the director's report required under section 4 of this act.
STATEMENT
This bill would establish a "pilot program" to determine whether a modification in the county executive form of government will be effective in achieving greater fiscal prudence on the part of county government.
The "county executive plan" form of government of the "Optional County Charter Law," article 3 of P.L.1972, c.154 (C.40:41A-31 et seq.), provides that the county executive prepares and submits the county budget to the board of chosen freeholders. Since the budget is introduced by resolution pursuant to the "Local Budget Law," N.J.S.40A:4-1 et seq., final executive approval of the county budget is not provided for. Similarly, public contracts are presented and signed by the county executive but may be adopted by resolution under the "Optional County Charter Law."
Because Essex County has both a high debt burden and a high equalized tax rate for county purposes it is an appropriate county to be the subject of the proposed modification to the "county executive plan" with regard to budget and public contracts decision making for the next few years. The "pilot program" will provide evidence as to whether the grant to a county executive of budget making powers analogous to those of the Governor would be in the best interest of county taxpayers.
Accordingly, the bill permits the Essex county executive to disapprove or reduce any item of appropriation, other than items of appropriation required for payment of debt service, while approving other appropriations. In addition, the bill would provide for greater executive control over public contracting.
The bill provides that, upon adoption of the budget pursuant to N.J.S.40A:4-10 by the board of chosen freeholders, the clerk of the board must, within three business days, present the adopted budget to the Essex county executive for review. The county executive may disapprove or reduce any item of appropriation, other than those required for the payment of debt service, while approving other appropriations.
The bill also provides that, based on any reductions made, the county executive must adjust the amount to be collected by property taxes to reflect those reductions. In the case of a disapproval or reduction, the county executive shall append to the budget a statement of each item that has been disapproved or reduced, and, unless overridden by the board of chosen freeholders, each such item shall not take effect or shall take effect as reduced, as appropriate. The bill provides that the budget shall be returned to the board of chosen freeholders no later than five business days following receipt thereof by the county executive.
Provides for greater oversight of spending and contracting by Essex county executive.