Provides for expansion of county transportation services to include disabled veterans; provides funding source for expansion.

A1040 FISCAL ESTIMATE

LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 1040

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: MAY 21, 2026

SUMMARY

Synopsis:

Provides for expansion of county transportation services
to include disabled veterans; provides funding source for expansion.

Type of Impact:

Annual county revenue and expenditure increases; annual
State expenditure increase; reallocation of revenues and expenditures from
the New Jersey Transit Corporation to the Department of Veterans Affairs.

Agencies Affected:

Department of Veterans Affairs; the New Jersey Transit
Corporation; county governments.

Office of
Legislative Services Estimate

Fiscal Impact

FY 2027�

FY 2028�

FY 2029�

State Expenditure Increase

Indeterminate

Indeterminate

Indeterminate

Local Expenditure Increase

Up to $2.3 million

Up to $2.5 million

Up to $2.7 million

Local Revenue Increase

Up to $2.3 million

Up to $2.5 million

Up to $2.7 million

�

The Office of Legislative Services (OLS) concludes that this bill
would increase local revenues and expenditures by up to $2.3 million in FY
2027.� This increase is based on the estimated amount of State grants that will
be made available to counties by the Department of Veterans Affairs to expand
services provided under the existing Senior Citizen and Disabled Resident
Transportation Assistance Program to include disabled veterans traveling to and
from medical counseling appointments within the State for their
service-connected conditions.� The OLS estimates available State grants to be
$2.5 million in FY 2028 and $2.7 million in FY 2029.

�

Under current law, Casino Revenue Fund tax collections include: 8.0
percent of casino gross revenues, 19.75 percent of internet gaming revenues,
8.5 percent of retail sports wagering revenues, and 19.75 percent of online
sports wagering revenues.� Effective July 1, 2025, the taxes on internet gaming
revenues and online sports wagering revenues increased from 15.0 percent and 13.0
percent, respectively.

�

Current law requires that 8.5 percent of the revenues deposited
into the Casino Revenue Fund be dedicated for the Senior Citizen and Disabled
Resident Transportation Assistance Program administered by the New Jersey
Transit Corporation.� This bill reallocates four percent of these amounts from
New Jersey Transit to the Department of Veterans Affairs to provide grants to
counties to reimburse them for their veteran transportation costs.

�

The State would incur some indeterminate amount of upfront costs
to help counties identify transportation service needs in the veteran
community, which may need to be revisited periodically, along with annual
workload increases to administer the grant program.� Because the bill
reallocates a portion of the funding already being provided by the State for
transportation assistance for senior citizens and disabled residents to fund
the grant program, the actual provision of grants to counties would not increase
annual State costs.

BILL DESCRIPTION

����� This bill expands county transportation services for
disabled veterans.� This bill requires the Department of Veterans Affairs to
coordinate with county governments on an expansion of existing
county-administered transit services under the Senior Citizen and Disabled
Resident Transportation Assistance Program in order to provide transportation
services for disabled veterans to and from medical counseling appointments at a
U.S. Department of Veterans Affairs facility within the State for their
service-connected conditions.� The bill also requires the department to help
counties identify transportation service needs within the veteran community.

����� Under current law, Casino Revenue Fund tax collections
include: 8.0 percent of casino gross revenues, 19.75 percent of internet gaming
revenues, 8.5 percent of retail sports wagering revenues, and 19.75 percent of
online sports wagering revenues.� The taxes on internet gaming revenues and online
sports wagering revenues increased from 15.0 percent and 13.0 percent,
respectively, on July 1, 2025.

����� Current law requires that 8.5 percent of the revenues
deposited into the Casino Revenue Fund be statutorily dedicated for the Senior
Citizen and Disabled Resident Transportation Assistance Program administered by
the New Jersey Transit Corporation.� This bill reallocates four percent of
these amounts to the Department of Veterans Affairs to provide grants to
counties to provide the outlined transportation services to disabled veterans.�
The bill takes effect on the first day of the sixth month following enactment.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� None received.

OFFICE OF LEGISLATIVE SERVICES

����� The OLS concludes that this bill would increase local
revenues and expenditures by up to $2.3 million in FY 2027.� This increase is
based on the estimated amount of State grants that will be made available to
counties by the Department of Veterans Affairs to expand services provided
under the existing Senior Citizen and Disabled Resident Transportation
Assistance Program to include disabled veterans traveling to and from medical
counseling appointments within the State for their service-connected
conditions.� This represents four percent of the statutorily dedicated amounts
($56.91 million) anticipated in the FY 2027 Governor�s Budget for the Senior
Citizen and Disabled Resident Transportation Assistance Program administered by
New Jersey Transit.� The revenues dedicated for this program are estimated to
grow by up to 8.4 percent between FY 2028 and FY 2029.� Assuming this growth
level, State grants to counties to provide reimbursement for their costs to
provide veteran transportation will increase to $2.5 million in FY 2028 and $2.7
million in FY 2029.� To the extent that dedicated revenues for the program
differ from this growth rate, this fiscal estimate would need to be adjusted
accordingly.��

����� The State would incur some indeterminate amount of
upfront costs to help counties identify transportation service needs in the
veteran community, which may need to be revisited periodically, along with
annual workload increases to administer the grant program.� Because the bill
reallocates a portion of the funding already being provided by the State for
transportation assistance for senior citizens and disabled residents to fund
the grant program, the actual provision of grants to counties would not increase
annual State costs.

Section:

State Government

Analyst:

Anna Harris

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).