SENATE, No. 1802
STATE OF NEW JERSEY
INTRODUCED JANUARY 23, 1997
By Senators INVERSO and LaROSSA
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 local fiscal years 1995, 1996 [and] 1997 and 1998, 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%] 25.0% of the base year amount;
(4) 1998...... 25.0% of the base year amount.
b. 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];
(4) 1998..... On May 15, 25.0% of the base year amount.
c. In local budget year [1998] 1999 and thereafter, no county shall be required to pay judicial costs or probation costs.
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).
(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 this act.
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 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 1, 1997 and 25% of the base year amount on October 1, 1997. This bill would provide for a $60 million payment on May 1, 1997 (25% of the base year amount as currently required) and another payment of $60 million on May 1, 1998 rather than on October 1, 1997 (25% of the base year amount on May 1, 1998). 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 accelerate the property tax benefit into calendar year 1997 by allowing the counties to retain use of $60 million until May 1, 1998.
Amends the "State Judicial Unification Act.