SENATE, No. 1914

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 20, 1997

 

 

By Senator KENNY

 

 

An Act limiting new or additional revenues or non-routine spending avoidance devices recommended in Governor's budget message, amending and supplementing P.L.1944, c.112.

 

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

 

    1. (New section) The Legislature finds and declares that while the Executive and Legislative branches of State government have shared responsibilities in annually preparing and enacting a balanced State budget the Executive has on occasion limited the ability of the Legislature to perform a truly independent and responsible role in the formulation of State fiscal policy by recommending in the Governor's budget message new or additional revenues or unusual spending avoidance devices that have not been previously considered by the Legislative branch that require consideration and enactment of new laws prior to the passage of a balanced budget, and that such new or additional revenue recommendations or unusual spending avoidance devices, recently taking form in complex public policy matters and in great relative dollar amounts, requiring speedy enactment to comply with an involved implementation process, effectively preclude the Legislative branch from considering any alternative course of action other than to comply with the Governor's recommendations because of the overwhelming size and intricacy of such proposals. It is therefore in the public interest to promote an independent, responsible and considered legislative review of the Governor's budget message and to preserve the balance of powers in the proposal and enactment of the State annual fiscal policies by limiting the relative size and timing of new and additional revenue recommendations and unusual spending avoidance devices made in the Governor's budget message.

 

    2. Section 12 of article 3 of P.L.1944, c.112 (C.52:27B-21) is amended to read as follows:

    12. The Governor may recommend in connection with [his] the Governor's budget message and under separate head new or additional sources of revenue or non-routine spending avoidance devices, and set forth in connection therewith [his] the Governor's recommendations as to the purpose or purposes to which such proposed new or additional revenue may be appropriated, or the appropriations to be avoided, provided however, that the new or additional sources of revenue or the non-routine spending avoidance devices, shall not exceed 2% of the total of all recommended appropriations made in the budget message from all sources unless those new or additional revenue recommendations or the non-routine spending avoidance devices have been enacted prior to the date of submission of the Governor's budget message. The total of the recommendations in the budget shall not be in excess of the estimate of all funds available for disbursement during the fiscal year to which such recommendations are applicable.

(cf: P.L.1944, c.112, art.3, s.12)

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides that the Governor's annual budget submission to the Legislature may not include a new or additional revenue item or non-routine spending avoidance device which has the effect of increasing revenue or avoiding spending by more than 2% of the total recommended appropriations from all funds unless the item is authorized by an enactment occurring prior to the budget submission. The Executive has on occasion limited the ability of the Legislature to perform a truly independent and responsible role in the formulation of State fiscal policy by recommending in the Governor's budget message new or additional revenues or non-routine spending avoidance devices that have not been previously considered by the Legislative branch that require consideration and enactment of new laws prior to the passage of a balanced budget. These new or additional revenue recommendations and unusual spending avoidance devices have recently been complex public policy matters and have involved great relative dollar amounts. They have also required speedy enactment to comply with an involved implementation process. This effectively precludes the Legislative branch from considering any alternative course of action other than to comply with the Governor's recommendations because of the overwhelming size and intricacy of such proposals. The 2% limitation, if imposed for the Governor's fiscal year 1998 budget recommendations, would equal approximately $328 million.


                             

 

Limits new or additional revenues or unusual spending avoidance devices recommended in Governor's budget message that have not been enacted prior thereto to 2% of all recommended appropriations.