New Jersey Assembly Bill ACR91

New Jersey 2026-2027 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

Amends State Constitution to prohibit State from using bonds to balance State budget.

Impact

If passed, ACR91 would reinforce fiscal discipline within New Jersey's state government by curbing the practice of utilizing borrowed funds for operational expenses. This would entail a significant shift in budgetary policy, as it directly addresses the historical reliance on bonds as a stopgap for immediate fiscal deficits. The measure seeks to revive the intent of the balanced budget provisions within the state constitution, which have been undermined by such practices as seen in the fiscal years leading up to 2005, where substantial amounts were borrowed to cover ongoing operational costs.

Summary

Assembly Concurrent Resolution No. 91 (ACR91) proposes a significant amendment to the New Jersey State Constitution, specifically targeting the use of bonds in balancing the state budget. The primary objective of this resolution is to prohibit the state from relying on proceeds from bond sales as a means to finance its budget. Instead, the amendment emphasizes that the state must operate within its revenue limits, mandating that any appropriations must be based on the funds available and ensuring that the state does not engage in deficit spending through borrowing.

Contention

One of the notable points of contention surrounding ACR91 is the potential impact on fiscal flexibility for state lawmakers. Proponents argue that ending the practice of using bonds for operational budgets is a necessary step toward responsible governance and long-term financial health for the state. Conversely, opponents may argue that this could limit the state’s ability to respond to sudden financial challenges or economic downturns, as it constrains available funding options. Furthermore, discussions may arise regarding the definition of 'capital projects,' which may lead to differing interpretations of permissible spending.

Implementation

The constitutional amendment, if approved by the legislature and subsequently ratified by public vote, would take effect in the fiscal year starting July 1 following the election. This timeline allows for necessary adjustments by the state government to align future fiscal practices with the new regulations imposed by the amendment, ensuring compliance and providing a clear roadmap for lawmakers in structuring future budgets.