SCR17

A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 2 of the Constitution of the State of New Jersey.

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

2. No money shall be drawn from the State treasury but for appropriations made by law. All moneys for the support of the State government and for all other State purposes as far as can be ascertained or reasonably foreseen, shall be provided for in one general appropriation law covering one and the same fiscal year; except that when a change in the fiscal year is made, necessary provision may be made to effect the transition. No general appropriation law or other law appropriating money for any State purpose shall be enacted if the appropriation contained therein, together with all prior appropriations made for the same fiscal period, shall exceed the total amount of revenue on hand and anticipated which will be available to meet such appropriations during such fiscal period, as certified by the Governor.

Revenue on hand and anticipated to be available during a fiscal year that is attributable to a nonrecurring source not regularly foreseen, including but not limited to revenue from sales of assets, loans or transfers from trust funds, refinancing of obligations, revaluations of assets or liabilities, acceleration or shifting of tax collection schedules, and cost recoveries, reimbursements or settlement payments from non-State sources, shall not be expended for any purpose other than for:

a. Capital construction, exclusive of those capital appropriations made to support the transportation system in this State pursuant to Article VIII, Section II, paragraph 4 of the State Constitution, and

provided however, that such revenue shall be available for the purpose of rebating, refunding or reducing general State taxes as may be provided by law.

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall ne published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+) or check (•) in the square opposite the word ‘Yes’. If you are opposed thereto make a cross (X), plus (+) or check (•) in the square opposite the word ‘No’.

		PROHIBITS SPENDING OF ONE-TIME REVENUE SOURCES FOR CERTAIN STATE GOVERNMENT EXPENSES
	YES	Shall the proposed amendment to Article VIII, Section II, paragraph 2 of the Constitution, providing that State revenue from a nonrecurring source not regularly foreseen for State budget purposes, such as revenue from sales of State government assets, loans or transfers to the State from trust funds, refinancing of State obligations, revaluations of State assets or liabilities, acceleration or shifting of State tax collection schedules, and cost recoveries, reimbursements or settlement payments from non-State sources, shall only be expended for (1) capital construction exclusive of certain transportation purposes, (2) accelerating repayment of the principal amount of State obligations, and (3) for the purpose of rebating, refunding or reducing general State taxes, be approved?
		INTERPRETIVE STATEMENT
	NO	This proposed constitutional amendment prohibits the use of one-time State revenue sources for funding the general operations, local aid and grant expenses of State government. Revenue obtained through nonrecurring sources such as sales of State government assets, loans or transfers to the State from trust funds, refinancing of State bonds, revaluations of State assets or liabilities, acceleration or shifting of State tax collection schedules, and cost recoveries, reimbursements or settlement payments from non-State sources, shall only be expended for (1) capital construction projects other than for transportation purposes, (2) accelerating repayment of the principal amount of State obligations, and (3) for rebating, refunding or reducing State taxes. The purpose of this amendment is to ensure that State government services and aid are supported by recurring State financial resources.

This resolution proposes an amendment to the State Constitution to prohibit the expenditure of State revenue "attributable to a nonrecurring source not regularly foreseen" for any purpose other than for certain capital construction projects and accelerating repayment of the principal amount of outstanding State obligations. The proposed amendment prohibits the expenditure of nonrecurring revenue for capital construction appropriations for the State transportation system which are supported by the constitutionally dedicated portion of the motor fuels tax. The proposed amendment specifies that the category of nonrecurring revenue includes, but is not limited to, revenue from: the sale of State government assets; loans or transfers to the State from trust funds; the refinancing of State bonds and other obligations; the revaluation of State assets or liabilities; the acceleration or shifting of State tax collection schedules; and cost recoveries, reimbursements or settlement payments from non-State sources.

The resolution provides a limited exception to the prohibition, permitting the application of nonrecurring revenue to rebates, refunds or reduction of State taxes.

The resolution further provides that the use of nonrecurring revenue to service outstanding State obligations would not apply broadly to interest-plus-principal payments under regular amortization schedules, but rather would be limited to accelerating repayment of the principal amount of those obligations earlier than required under those schedules, thus effecting not merely a substitution of nonrecurring revenue for recurring revenue as the source of State debt payments, but an actual reduction in total interest paid.

Proposes constitutional amendment to prohibit the use of one-time State revenue sources for State government operations and State aid and grants-in-aid spending.