SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 1847

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 5, 1997

      The Senate Community Affairs Committee reports favorably Senate Bill No. 1847 with committee amendments.

      As amended by the committee, this bill would permit a local unit to adopt an ordinance authorizing special emergency appropriations for the payment of contractually required severance liabilities resulting from the layoff or retirement of employees, when the total liability is in excess of 10 per cent of the amount to be raised by taxes for municipal purposes in the fiscal year in which the layoffs or retirements take place.

      As is the case for special emergency notes for other purposes, special emergency notes issued pursuant to the provisions of this bill would not be included in the calculation of gross debt as defined in N.J.S.40A:2-43. Additionally, as in the case of special emergency notes for other purposes, special emergency notes issued pursuant to the provisions of this bill must be paid in full no later than the last day of the fifth year following the date of the emergency resolution, as required by the provisions of N.J.S.40A:4-55.

      The bill provides that its provisions would take effect immediately and be retroactive to December 1, 1996.

      The committee amended the bill to extend the bill's provisions to situations in which contractually required severance liabilities due to employee retirement packages will exceed 10 percent of the amount to be raised by taxes for municipal purposes in the fiscal year in which the retirements take place.

      These amendments make the bill identical to Assembly, No. 2555 (1R), which was also favorably reported by the committee this date.