SENATE, No. 2147

STATE OF NEW JERSEY

INTRODUCED MAY 22, 1997

By Senator BUBBA

An Act requiring county chief financial officers to account for savings resulting from the State's takeover of judicial costs, supplementing chapter 4 of Title 40A of the New Jersey Statutes, and making an appropriation.

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

    1. The Legislature finds and declares that:

    a. As a result of voter approval in November, 1992, of Article VI, Section VIII, paragraph 1 of the State Constitution, and pursuant to the provisions of the "State Judicial Unification Act," P.L.1993, c.275 (C.2B:10-1 et seq.), the State is to assume certain costs of judicial administration;

    b. The "State Judicial Unification Act" established a phase-in period during which the counties would pay a decreasing percentage, and the State would pay an increasing percentage, of the costs of operating the judicial system;

    c. It was the Legislature's intent in enacting the "Judicial Unification Act" that because the counties would no longer need to generate tax revenues required to finance the judicial system, significant property tax relief would be afforded to the citizens of this State;

    d. Because the phase-in period will be completed at the end of 1997, it is appropriate that at this time the counties provide an accounting of how they have utilized the savings that have accrued to them as a result of the State takeover of judicial costs; and

    e. In addition, it is appropriate that the counties provide the public with sufficient information to evaluate whether the property tax relief that the Legislature intended to provide in enacting the "State Judicial Unification Act" actually has occurred.

    2. The chief financial officer of every county shall provide a full and complete itemized accounting of how monies saved by the county as a result of the approval of Article VI, Section VIII, paragraph 8 of the State Constitution and the enactment of the "State Judicial Unification Act," P.L.1993, c.275 (C.2B:10-1 et seq.), have been utilized. Each county chief financial officer shall prepare the accounting in the form of a report utilizing the previous year's expenditures as set forth in the county's budget, to be certified by the registered municipal accountant who prepares the annual audit of the county budget pursuant to N.J.S.40A:5-4 under penalty of perjury and filed as follows:

    a. The first report shall provide a separate itemized accounting of how the savings have been utilized for each local budget year of the phase-in of the State takeover of judicial costs, as specified in section 6 of P.L.1993, c.275 (C.2B:10-6). If all or part of the savings has been utilized as property tax relief, the report shall so state. The first report shall be filed with the Director of the Division of Local Government Services on the 60th day after enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

    b. Beginning in local fiscal year 1999, reports shall be prepared annually for the previous local fiscal year's expenditures and filed with the director at the same time that the county governing body transmits the adopted budget to the director for the director's examination pursuant to N.J.S.40A:4-76. If all or part of the savings has been utilized as property tax relief, each annual report shall so state.

    3. In order to comply with the provisions of Article VIII, Section II, paragraph 5 of the State Constitution concerning the State's payment for mandated programs, there is appropriated from the General Fund to the Division of Local Government Services in the Department of Community Affairs, $100,000 to be allocated among the counties as reimbursement for their costs in reporting pursuant to this act.

    4. This act shall take effect immediately.

STATEMENT

    This bill requires the chief financial officer of every county to provide a full and complete itemized accounting of how monies saved by the county as a result of the approval of Article VI, Section VIII, paragraph 8 of the State Constitution and the enactment of the "State Judicial Unification Act," P.L.1993, c.275 (C.2B:10-1 et seq.), have been utilized.

    It was the Legislature's intent in enacting the "State Judicial Unification Act," that because counties would not be required to generate tax revenues to finance the judicial system, significant property tax relief would be afforded to the State's citizens. As the phase-in of the State's takeover of judicial costs comes to an end, this bill would require an accounting of how the savings have been utilized so that the public can evaluate whether or not the property tax relief that the Legislature intended to provide actually has occurred.

    According to the bill, the chief financial officer of each county would be required to prepare a report accounting for how the savings have been utilized during each local budget year of the phase-in period. The report would be certified by the registered municipal accountant who prepares the annual audit of the county's budget pursuant to N.J.S.40A:5-4 under penalty of perjury and filed with the Director of the Division of Local Government Services on the 60th day after enactment of the bill.

    Beginning in local fiscal year 1999, the chief financial officer of each county would be required to file the report annually with the director at the same time that the county governing body transmits the adopted budget to the director for the director's examination pursuant to N.J.S.40A:4-76.

     In order to comply with the provisions of Article VIII, Section II, paragraph 5 of the State Constitution concerning the State's payment for mandated programs, the bill appropriates $100,000 to the Division of Local Government Services to be allocated among counties to reimburse them for their costs in reporting pursuant to the bill's requirements.

Requires county governing body to account for savings resulting from State's takeover of judicial costs.