STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Senators Cruz-Perez and O'Scanlon
SYNOPSIS
Requires stress testing on State’s ability to provide services in various economic conditions.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act requiring annual analyses of the State’s ability to provide services in various economic conditions, supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Department of the Treasury shall once every third year conduct and report a stress test analysis on the State’s ability to maintain services and provide necessary assistance to residents in various economic conditions.
b. The stress test analyses required pursuant to this section shall include:
(1) long- and short-term projections of major funding sources in various economic conditions, including revenues from major taxes and funding from the federal government;
(2) a comparison between projections of major funding sources and historical trends for each of those funding sources in various economic conditions;
(3) an analysis of expenditures that are likely to increase or decrease in various economic conditions;
(4) an accounting of the State’s reserves, including amounts deposited into the “Surplus Revenue Fund,” established pursuant to P.L.1990, c.44 (C.52:9H-14 et seq.); and
(5) options that the State has to respond to, and lessen the negative impact of, economic recessions.
c. The Department of the Treasury shall make the stress test analyses required pursuant to this section publicly accessible on its website, and shall include it as part of the Governor’s budget message required pursuant to section 11 of article 3 of P.L.1944, c.112 (C.52:27B-20).
2. This act shall take effect immediately.
STATEMENT
This bill requires the Department of the Treasury to, once every third year, conduct and report on a stress test analysis of the State’s ability to maintain services and provide necessary assistance to residents in various economic conditions.
The stress test analyses required by this bill would include: (1) long- and short-term projections of major funding sources, including revenues from major taxes and funding from the federal government; (2) a comparison between projections of major funding sources and historical trends for each of those funding sources; (3) an analysis of expenditures that are likely to increase or decrease in various economic conditions; (4) an accounting of the State’s reserves, including amounts deposited into the “Surplus Revenue Fund”; and (5) options that the State has to respond to, and lessen the negative impact of, economic recessions.
Under the bill, the Department of the Treasury is required to make the stress test analyses publicly accessible on its website, and include it as part of the Governor’s annual budget message.