Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
SYNOPSIS
Requires Governor to include multi-year baseline budget funding projections in annual budget message.
CURRENT VERSION OF TEXT
As introduced.
An Act modifying the executive State budget presentation to include multi-year baseline budget funding projections, supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Governor shall, together with the Governor’s budget recommendations and budget message required pursuant to section 11 of article 3 of P.L.1944, c.112 (C.52:27B-20), provide a projected baseline budget for all recommended appropriations pursuant to item (2) of subsection C. of section 11 of article 3 of P.L.1944, c.112 (C.52:27B-20). The baseline budget shall utilize the baseline budget accounting method and cover the ensuing three fiscal years. In calculating the projected baseline budget amounts, the following factors shall be taken into consideration: program specific inflation, previously enacted policy and program expansions and eliminations relevant to each fiscal year, caseload or population changes, and changes to levels of funding for employee salaries and benefits according to statute. Statements of underlying assumptions and methods used to calculate all projected baseline budget amounts shall accompany the baseline budget.
2. This act shall take effect immediately and apply to each fiscal year beginning on or after July 1, 2022.
STATEMENT
This bill reforms certain aspects of the annual State budget process by altering the executive presentation of budget recommendations.
The bill requires an analysis of current budgetary policies utilizing the baseline budget accounting method, also known as current services budgeting. A baseline budget indicates what the State would have to spend on a given program in order to maintain the program at its current level, in the absence of any proposed policy changes. It reflects the impact of factors that cause year-to-year variations in the cost of providing a given service and the number of people who use it, as well as enacted policy changes that have yet to take effect.
The baseline budget projection would cover the next three ensuing fiscal years. Statements of underlying assumptions and methods used to calculate all baseline budget amounts are required to be included with the baseline budget.