Establishes requirements for preparation and final passage of annual appropriations act; incorporates multi-year revenue and expenditure projections for informational purposes.

S3457

SENATE, No. 3457

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 9. 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

Senator� MICHAEL L. TESTA, JR.

District 1 (Atlantic, Cape May and Cumberland)

Co-Sponsored by:

Senators Schepisi and Cryan

SYNOPSIS

���� Establishes requirements for preparation and final
passage of annual appropriations act; incorporates multi-year revenue and
expenditure projections for informational purposes.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the annual appropriations act, supplementing
Title 1 of the Revised Statutes, and amending P.L.1944, c.112.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� a.� No
bill to effectuate the annual appropriations act for any State fiscal year
shall receive third reading and final passage in either house of the
Legislature unless:

���� (1)�� the bill receives first
reading and introduction on or before June 1 of the immediately preceding State
fiscal year;

���� (2)�� the final text of the
bill is available to the public for not less than 14 full calendar days before
the date of third reading and final passage, during which period not less than
one public hearing shall be heard by the Senate Budget and Appropriations Committee
or the Assembly Budget Committee, or any successor committee, as applicable, in
which hearing members of the public shall be given opportunity to testify on
the bill; and

���� (3)�� the bill is accompanied
by an explanation, either in the sponsor statement, committee statement, or
other similar document, explaining any significant changes related to the total
appropriation provided in the bill, or any items of appropriation contained in
the bill, as compared to the Governor�s budget recommendations.� The
explanation shall also explain any ways in which the sponsor of the bill
disagrees with the Governor�s long-term revenue and expenditure projections
provided for informational purposes pursuant to section 11 of article 3 of
P.L.1944, c.112 (C.52:27B-20).

���� b.��� The requirements of this
section may be waived by an affirmative vote of three-fourths of the total
authorized membership of each house of the Legislature.

���� 2.��� Section 5 of article 3
of P.L.1944, c.112 (C.52:27B-14) is amended to read as follows:

���� 5.��� On or before October
first in each year
,
each department of the State Government, board,
commission, officer or other State agency, hereinafter in this article called
"spending agency," shall file with the
[
commissioner
]

Director
of the Division of Budget and Accounting in the Department of the Treasury:

����
a.
� a request for
appropriation or permission to spend, as the case may be, which shall specify
all expenditures proposed to be made by such spending agency during the next
ensuing fiscal year
; and

����
b.���
for informational purposes, a projection of the request
for appropriations or permission to spend, as the case may be, which shall
specify all expenditures that are anticipated for the two State fiscal years
immediately following the next ensuing State fiscal year to be included in the
Governor�s budget recommendations
.

(cf: P.L.1944, c.112, art.3, s.5)

���� 3.��� Section 6 of article 3
of P.L.1944, c.112 (C.52:27B-15) is amended to read as follows:

���� 6.��� A request
[
provided in
]

and the
projection for informational purposes, pursuant to
section
[
five
]

5 of
article 3 of P.L.1944, c.112 (C.52:27B-14),
shall be made by the request
officer. In the case of the Supreme and Superior Courts, the request officer
shall be the administrative director of the courts under the direction of the
Chief Justice of the Supreme Court and, in the case of the Legislature, the
request officer shall be the secretary of the Senate and the clerk of the
General Assembly, respectively.

(cf: P.L.1953, c.49, s.51)

���� 4.��� Section 7 of article 3
of P.L.1944, c.112 (C.52:27B-16) is amended to read as follows:

���� 7.���
[
Said
]

A

request
and the projection for informational purposes, pursuant to section 5
of article 3 of P.L.1944, c.112 (C.52:27B-14),
shall be made on forms to be
furnished by the
[
commissioner
]

Director
of the Division of Budget and Accounting in the Department of the Treasury

and subject to such rules and regulations as he shall prescribe from time to
time and shall show in detail:

���� a.���� A statement exhibiting
for the next ensuing fiscal year all estimated revenues; the estimate of
revenues for the current fiscal year and the actual revenues for the past
completed fiscal year;

���� b.��� The several purposes and
itemized amounts for which appropriations or permissions to spend are
requested, without deductions for estimated revenues allocated to such spending
agency;

���� c.���� A statement exhibiting
for the last preceding fiscal year the amounts of the annual and supplemental
appropriations, transfers of appropriations, allotments from the emergency
fund, dedicated receipts, if any, and of all expenditures made thereunder and the
unexpended balance, if any, and the extent to which the same is obligated or
encumbered;

���� d.��� A statement indicating
how much of the requested appropriation will be spent in each quarter of the
fiscal year
; and

����
e.���� For informational
purposes, a statement indicating the amount of revenues and expenditures that
are anticipated for the two State fiscal years immediately following the fiscal
year for which the request is submitted
.

���� In case an appropriation is
requested for a project which cannot be completed within the next ensuing
fiscal year, the request shall set forth in detail a complete description of
the whole project and the estimated and detailed cost thereof, and shall show
separately the part of the project which has been completed, if any, and the
actual cost thereof;� the part remaining to� be completed and the estimated
cost thereof, and the part proposed to be completed within the ensuing fiscal
year and the estimated cost thereof.

(cf: P.L.1944, c.112, art.3, s.7)

���� 5.��� Section 10 of article 3
or P.L.1944, c.112 (C.52:27B-19) is amended to read as follows:

���� 10.� On or before December
[
thirty-first
]

31st

of each year, or at such other time or times as the Governor may request, the
[
commissioner
]

Director
of the Division of Budget and Accounting in the Department of the Treasury

shall certify and transmit to the Governor and Governor-elect the requests of
the spending agencies, together with
[
his
]

the director�s

findings, comments and recommendations thereon.�

(cf: P.L.1944, c.112, art.3, s.10)

���� 6.��� Section 11 of article 3
of P.L.1944, c.112 (C.52:27B-20) is amended to read as follows:

���� 11.� The Governor shall
examine and consider all requests for appropriations, together with the
findings and recommendations of the Director of the Division of Budget and
Accounting, and shall formulate the Governor's budget recommendations, which
shall be presented as a budget message by the Governor during an appearance
before a joint session of the Legislature which shall be convened at 12 noon on
a date on or before the fourth Tuesday in February in each year.

���� The budget message shall
include the proposed complete financial program of the State Government for the
next ensuing fiscal year, and shall set forth in columnar form detailed as to
each source of anticipated revenue and the purposes to which the recommended
appropriations and permissions to spend shall apply for each spending agency in
substantially the following form:

���� A.�� Revenues for the General
Fund, other budgeted State revenues, all other dedicated funds, Federal aid
funds, and trust funds:

���� (1)�� An estimate of all
balances to be on hand on the first of July next ensuing which are to be
available for appropriations, supported by the calculations used in arriving at
the estimated figures;

���� (2)�� An estimate of the
anticipated revenues from all sources applicable to the budget period, together
with the actual amount earned from each source during the last completed fiscal
year, and the estimate of revenues expected to be earned from each source for
the current fiscal year
; and

����
(3) For informational
purposes, a projection of the amount of revenues anticipated from all sources
applicable and available to support appropriations for the two State fiscal
years immediately following the fiscal year for which the budget message is presented,
which projection shall be based on the requests submitted pursuant to
subsection b. of section 5 of article 3 of P.L.1944, c.112 (C.52:27B-14)
.

���� B.��� (Deleted by amendment,
P.L.2003, c.275).

���� C.��� Appropriations.� The
total of the appropriations recommended for the ensuing fiscal year in
substantially the following form:

���� Detailed Budget:

���� (1)�� An itemized statement of
all appropriation requests and requests for permission to spend from the
General State Fund, other budgeted State revenues, other dedicated funds and
Federal aid and trust funds;

���� (2)�� An itemized statement of
the amounts recommended by the Governor with respect to item "1"
above;

���� (3)�� An itemized statement of
all amounts appropriated and permissions granted for the current fiscal year
with respect to item "1" above;

���� (4)�� An itemized statement of
all amounts appropriated and permissions granted for the last preceding fiscal
year with respect to item "1" above detailed as to annual and
supplemental appropriations, transfers of appropriations, State Emergency Fund
allotments, and permission to spend, as the case may be, and showing also total
expenditures, reserves, lapses and unencumbered balances;

���� (5)�� In addition, such other
statistical information as may more fully show comparisons and costs of the
several departments
; and

����
(6)�� For informational
purposes, a projection of the anticipated appropriations to be made from the
General State Fund, other budgeted State revenues, other dedicated funds and
Federal aid, and trust funds for the two State fiscal years immediately
following the fiscal year for which the budget message is presented, which
projection shall be based on the requests submitted pursuant to subsection b.
of section 5 of article 3 of P.L.1944, c.112 (C.52:27B-14)
.

(cf: P.L.2003, c.275, s.1)

���� 7.��� This act shall take
effect immediately and apply to the preparation and final passage of the annual
appropriations act for each fiscal year beginning on or after the July 1 next
following the date of enactment.

STATEMENT

���� This bill establishes the
requirements for the preparation and final passage of the annual appropriations
act and incorporates multi-year revenue and expenditure projections for
informational purposes.

���� Specifically, the bill
provides that no bill to effectuate the annual appropriations act for any State
fiscal year would be allowed to receive third reading and final passage in
either house of the Legislature unless the following three requirements are met:

���� (1) the bill receives first
reading and introduction on or before June 1 of the immediately preceding State
fiscal year;

���� (2)�� the final text of the
bill is available to the public for not less than 14 full calendar days before
the date of third reading and final passage, during which period not less than
one public hearing is required be heard by the Senate Budget and Appropriations
Committee or the Assembly Budget Committee, or any successor committee, as
applicable, in which hearing members of the public would be given opportunity
to testify on the bill; and

���� (3)�� the bill is accompanied
by an explanation, either in the sponsor statement, committee statement, or
other similar document, explaining any significant changes related to the total
appropriation provided in the bill, or any items of appropriation contained in
the bill, as compared to the Governor�s budget recommendation.� The explanation
would also be required to explain any ways in which the sponsor of the bill
disagrees with the Governor�s long-term revenue and expenditure projections,
which the bill would require the Governor include in the annual budget message
for informational purposes.

���� Under the bill, these three
requirements for the preparation and final passage of the annual appropriations
act for any State fiscal year could be waived by an affirmative vote of
three-fourths of the total authorized membership of each house of the Legislature.

���� In addition to the information
currently included in the Governor�s annual budget message, the bill also
requires the Governor to include the following information for informational
purposes: (1) a projection of the amount of revenues anticipated from all
sources applicable and available to support appropriations for the two State
fiscal years immediately following the fiscal year for which the budget message
is presented; and (2) a projection of the anticipated appropriations to be made
from the General State Fund, other budgeted State revenues, other dedicated
funds and Federal aid, and trust funds for the two State fiscal years
immediately following the fiscal year for which the budget message is
presented.� To facilitate the inclusion of this information, the bill requires
that each department of State government, board, commission, officer, or State
agency submit to the Director of the Division of Budget and Accounting in the
Department of the Treasury a projection of its request for appropriation or permission
to spend, as the case may be, that specifies all expenditures that are
anticipated for the two State fiscal years immediately following the fiscal
year for which the Governor�s budget message is presented. The director would
certify and submit to the Governor, for informational purposes, the anticipated
appropriations requests submitted by each spending agency for the two State
fiscal years immediately following the fiscal year for which the budget message
is presented, as well as a statement indicating the amount of revenues
anticipated from all sources applicable and available to support appropriations
for the same period.

���� Under current law, the
Governor�s budget message addresses the proposed complete financial program of
the State government for only the next ensuing State fiscal year.� Each
department of the State Government, board, commission, officer or other State
agency is required to submit to the director a request for appropriation or
permission to spend, as the case may be, that specifies all expenditures
proposed to be made by such spending agency during the next ensuing fiscal
year.