SENATE, No. 1516

STATE OF NEW JERSEY

INTRODUCED OCTOBER 3, 1996

By Senator CIESLA

An Act concerning local budget practices and amending P.L.1990, c.89.

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

    1. Section 6 of P.L.1990, c.89 (C.40A:4-45.38) is amended to read as follows:

    6. No transfer of funds authorized by N.J.S.40A:4-58 and N.J.S.40A:4-59 shall be made from an appropriation which is not subject to limitation pursuant to section 3 or 4 of P.L.1976, c.68 (C.40A:4-45.3 and 40A:4-45.4) to an appropriation which is subject to either of those limitations. [Notwithstanding the provisions of N.J.S.40A:4-58 and N.J.S.40A:4-59 no transfer of funds is authorized between appropriations not subject to limitation pursuant to section 3 or 4 of P.L.1976, c.68 (C.40A:4-45.3 and 40A:4-45.4), except transfers may be made to interest and redemption charges.]

(cf: P.L.1990, c.89, s.6)

    2. This act shall take effect immediately.

STATEMENT

    This bill amends section 6 of P.L.1990, c.89 (C.40A:4-45.38) to remove the prohibition against transfers of funds between local government accounts that are outside of the budget cap. This amendment would put accounts outside of the local budget cap on par with accounts inside of the local budget cap for which inter-account transfers may be made. This change could result in reducing the local tax burden since all of the accounts outside of the local budget cap would not have to be funded up to their theoretical maximums.

Permits transfer of funds between local government accounts outside of local budget cap.