SCR35

A Concurrent Resolution proposing to amend paragraphs 2 and 3 of Article VIII, Section II, 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 of the Constitution of the State of New Jersey is hereby agreed to:

a. Amend Article VIII, Section II, paragraph 2 of the Constitution to read as follows:

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 biennial fiscal [year] period; except that when a change in the biennial fiscal [year] period 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 biennial fiscal period, as certified by the Governor.

b. Amend Article VIII, Section II, paragraph 3 of the Constitution to read as follows:

3. The Legislature shall not, in any manner, create in any biennial fiscal [year] period a debt or debts, liability or liabilities of the State, which together with any previous debts or liabilities shall exceed at any time [one] two per centum of the total amount appropriated by the general appropriation law for that biennial fiscal [year] period, unless the same shall be authorized by a law for some single object or work distinctly specified therein. Regardless of any limitation relating to taxation in this Constitution, such law shall provide the ways and means, exclusive of loans, to pay the interest of such debt or liability as it falls due, and also to pay and discharge the principal thereof within thirty-five years from the time it is contracted; and the law shall not be repealed until such debt or liability and the interest thereon are fully paid and discharged.

Except as hereinafter provided, no such law shall take effect until it shall have been submitted to the people at a general election and approved by a majority of the legally qualified voters of the State voting thereon. No voter approval shall be required for any such law authorizing the creation of a debt or debts in a specified amount or an amount to be determined in accordance with such law for the refinancing of all or a portion of any outstanding debts or liabilities of the State heretofore or hereafter created, so long as such law shall require that the refinancing provide a debt service savings determined in a manner to be provided in such law and that the proceeds of such debt or debts and any investment income therefrom shall be applied to the payment of the principal of, any redemption premium on, and interest due and to become due on such debts or liabilities being refinanced on or prior to the redemption date or maturity date thereof, together with the costs associated with such refinancing. All money to be raised by the authority of such law shall be applied only to the specific object stated therein, and to the payment of the debt thereby created. This paragraph shall not be construed to refer to any money that has been or may be deposited with this State by the government of the United States. Nor shall anything in this paragraph contained apply to the creation of any debts or liabilities for purposes of war, or to repel invasion, or to suppress insurrection or to meet an emergency caused by disaster or act of God.

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 be 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."

		BIENNIAL STATE APPROPRIATIONS ACT
	YES	Do you approve of the amendment to the State Constitution, agreed to by the Legislature, requiring that the general State appropriation law cover one biennial (two year) fiscal period?
		INTERPRETIVE STATEMENT
	NO	If this proposed amendment to the State Constitution is approved, the Governor and the Legislature would be required to enact one general State appropriation law covering a two year fiscal period, instead of the current single fiscal year. Currently, the Constitution requires that a single State appropriations law provide for all of the reasonable foreseeable expenses of State government, including direct State services, the support of local governments and school districts, and services provided by private parties, for the entire State fiscal year. The Governor must certify that the total revenue on hand and anticipated from federal funds, tax revenues and fees is at least equal to the appropriated expenditures for the fiscal year. This proposed amendment requires that all foreseeable State expenditures for a two year fiscal period be enacted as a single law, and that the Governor certify that the total revenue on hand and anticipated for that period is at least equal to the expenditures for the two year period.

4. This constitutional amendment shall, if approved, be applicable to the first biennial fiscal period commencing in the next even numbered year after approval.

The purpose of this proposed constitutional amendment is to require that the general State appropriation law cover a two year fiscal period. Currently, the general State appropriations law covers a single fiscal year.

Approximately 18 states use some form of biennial budgeting which forces a State to plan for out-year expenses and estimate revenues on a two-year basis.

Proposes constitutional amendment to require the general State appropriation law to cover one biennial fiscal period.