SENATE, No. 1580

 

STATE OF NEW JERSEY

 

INTRODUCED OCTOBER 3, 1996

 

 

By Senators KENNY and Casey

 

 

An Act to amend "An act making appropriations for the support of State Government and the several public purposes for the fiscal year ending June 30, 1997 and regulating the disbursement thereof," approved June 28, 1996 (P.L.1996, c.42).

 

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

 

    1. Section 1 of P.L.1996, c.42, on pages 109 and 110, is amended to read as follows:

 

GENERAL FUND

DIRECT STATE SERVICES

94 INTERDEPARTMENTAL ACCOUNT

74 General Government Services

9430 Salary Increases and Other Benefits

 

The Director of the Division of Budget and Accounting shall transfer from departmental accounts, excluding the accounts of public institutions of higher education, and credit to the Salary Increases and Other Benefits accounts a sum of $40,900,000 to reflect savings from a managed attrition program and additional savings from other operating accounts. This additional sum is appropriated for Salary Increases and Other Benefits.

In addition to the amount appropriated hereinabove for the Salary Increases and Other Benefits account, the Director of the Division of Budget and Accounting shall transfer from departmental non-salary accounts placed in reserve, except for the non-salary accounts of public institutions of higher education, the sum of $25,500,000 to the Salary Increases and Other Benefits account and allocate from this sum $19,000,000 among the public institutions of higher education to cover the fiscal year 1997 State share of the public higher education institutional salary program. The receipt of these funds by a public institution of higher education shall be contingent upon the institution reducing its student tuition charges for the second semester of the 1996-97 academic year. In addition, $1,500,000 of the $25,500,000 shall be allocated to independent institutions of higher education eligible to receive State aid and $5,000,000 of the $25,500,000 shall be allocated to the county colleges to begin the phase-in of a 33% State funding level of county college operations as recommended by the Commission on Higher Education. The sum of $25,500,000 transferred to the Salary Increases and Other Benefits account shall be derived from a portion of appropriations accounts subject to the 25% reserve placed on departmental non-salary accounts pursuant to the State Treasurer's fiscal year 1997 directive.

(cf: P.L.1996, c.42, s.1)

 

    2. This act shall take effect immediately.

 

STATEMENT

 

    This bill restores a total of $25,500,000 to public and private institutions of higher education to be allocated as follows: $19,000,000 is to be allocated to the Interdepartmental Account--Salary Increases and Other Benefits for the State's share of the FY 1997 salary program at the public institutions of higher education, the receipt of which is contingent upon the institution reducing its student tuition charges for the second semester of the 1996-97 academic year; $1,500,000 is to allocated to independent institutions of higher education that receive State aid; and $5,000,000 is to be allocated to the county college sector in order to phase-in the Commission on Higher Education's recommendation that the State support a funding level of 33% for the county colleges. The $25,500,000 is to be derived through the transfer of a portion of the 25% reserve imposed on departmental non-salary accounts, excluding the accounts of higher education institutions, pursuant to the Treasurer's directive. Although the State negotiates the salary increases for the State colleges no funding was recommended or appropriated for the State's share of the negotiated salary increases at public institutions of higher education estimated at $19 million for FY 1997.

    The bill also amends existing budget language concerning the transfer of $40,900,000 from departmental accounts to the Salary Increases and Other Benefits account to exclude the accounts of public institutions of higher education. This will save the public colleges and universities $6.78 million.

 

                             

 

Restores funding in the amount of $25.5 million to public and independent institutions of higher education for FY 1997.