New Jersey Senate Bill SCR42

New Jersey 2026-2027 Regular Session

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

Caption

Amends Constitution to limit use of nonrecurring revenue in State budget except in certain times of crisis and limits State budget growth.

Impact

The proposed amendment to the constitution aims to limit the growth of state expenditures to a more manageable rate, specifically tying it to the growth in the Consumer Price Index from the preceding fiscal period. This mechanism is intended to align state financial practices more closely with economic realities while enhancing long-term financial sustainability. By maintaining a balanced budget that does not exceed certain thresholds, the state government is expected to navigate its fiscal responsibilities with greater care, ultimately benefiting taxpayers and public services alike.

Summary

SCR42, a Senate Concurrent Resolution introduced in the New Jersey Legislature, seeks to amend the state constitution to enforce stricter rules on budget appropriations. The resolution stipulates that all state budget appropriations must be balanced with regularly collected recurring revenues, disallowing the use of one-time or nonrecurring revenues to cover budgetary requirements. This amendment is designed to promote fiscal discipline and prevent 'short-sighted' budgeting practices within the state government.

Contention

One of the notable points of contention surrounding SCR42 is the provision allowing for exceptions in times of crisis or disaster, where a two-thirds legislative vote could permit budget breaches using nonrecurring revenues. Critics argue this could lead to misuse of emergency powers whereby the legislature might circumvent the restrictions during less dire circumstances, potentially undermining the intention behind the amendment. Supporters, however, maintain that such a clause is necessary to provide flexibility during unforeseen emergencies that require immediate financial resources.