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S818 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 818
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: MARCH 6, 2026
SUMMARY
Synopsis:
Requires Division of Consumer Affairs to hire staff to
alleviate professional license application backlog; appropriates $10,000,000
in fiscal years 2027, 2028, and 2029.
Type of Impact:
Annual State expenditure increase; General Fund.
Agencies Affected:
Department of Law and Public Safety.
Office of
Legislative Services Estimate
Fiscal Impact
FY 2027 through FY 2029�
Year 4 & Thereafter
Annual State Cost Increase
Up to $10 Million
Indeterminate
�
The
Office of Legislative Services (OLS) estimates the bill will result in a State
expenditure increase of up to $30 million over a three-year period for the
Division of Consumer Affairs in the Department of Law and Public Safety to hire
additional staff to alleviate the professional license application backlog. The
bill appropriates $10 million each year in FY 2027 through FY 2029 for this
purpose.
�
If
the full $10 million is not expended in the year of appropriation, the residual
amount will be spent in subsequent fiscal years until the appropriation is
exhausted.
�
After
the initial three-year period, the OLS estimates the State may incur an
indeterminate annual cost for continued salaries and benefits for the
additional staff.
BILL DESCRIPTION
����� This bill requires the Division of Consumer Affairs in
the Department of Law and Public Safety to hire additional staff to alleviate
the professional license application backlog. The bill appropriates $10,000,000
in each of the fiscal years 2027, 2028, and 2029 for the hiring of additional
staff.
����� The various State professional boards are responsible
for processing initial license requests and periodic licensure renewals, as
required by statute. The bill indicates there is currently a significant
backlog of these license requests in several of the regulated professions
within the Division of Consumer Affairs. The bill appropriates $10,000,000 in
each of the three cited fiscal years to allow for the hiring of additional
staff to alleviate the current backlog.
����� The bill further requires the division to provide an
annual report that provides details on the spending authorized by the bill, and
the effect of the spending on division staffing and the processing of license
applications and renewals.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� No information was received from the Executive Branch
on this bill. However, in response to FY 2025 OLS Discussion Points, the
Department of Law and Public Safety provided information on State professional boards
staffing reductions and workload increases.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS estimates the bill will result in a State
expenditure increase of up to $30 million over a three-year period for the
Division of Consumer Affairs to hire additional staff to alleviate the
professional license application backlog. The bill appropriates $10 million
each year in FY 2027 through FY 2029 for this purpose. If the full $10 million
is not expended in the year of appropriation, the residual amount will be spent
in subsequent fiscal years until the full $10 million is exhausted. After the
initial three-year period, the OLS estimates the State may incur an
indeterminate annual cost for continued salaries and benefits for the
additional staff if the staff hired to alleviate the backlog are maintained.
����� The Division of Consumer Affairs professional boards
are historically self-sustaining, because they generate revenues to offset
expenses. Prior to FY 2015, these funds were annually carried forward with an
expectation of being utilized to offset professional board expenses such as
technological advances, expedited processing of licensure, and enforcement support.
As of FY 2015, the Division of Consumer Affairs excess revenue has been
utilized to support other Department of Law and Public Safety purposes.
����� According to personnel data found in the annual
Governor�s Budget recommendations, the number of filled positions related to
the operation of State professional boards decreased by 100 from FY 2006 to FY
2025; however, the number of boards has increased by 13 since 2002, with the
number of license applications and renewals also increasing.
*Governor�s FY 2006 to FY 2026 Budgets.
����� During the FY 2025 Budget process, the Department of
Law and Public Safety indicated that the professional board staff reductions
may be attributed to various factors such as: 1) the challenge of backfilling
when employees resigned or retired; 2) an increase in the number of employee
retirements during the COVID-19 public health emergency; and 3) retirements
following a return to in-office work.
����� Additionally, the department noted that work assigned
to the division has grown as new boards have been created. Specifically, the
department indicated that �[t]he boards have increased the issuance of initial
licenses by over 110 percent since 2002, rising from approximately 35,000 to
nearly 83,000 in 2023�the number of renewals issued by the Boards for all types
of licenses, permits, certifications, and other approvals has increased from
approximately 500,000 for the 2002-2003 renewal period to approximately 700,000
for the 2022-2023 renewal period.�
����� Between FY 2015 and FY 2023, budget language permitted
the Attorney General to reallocate unexpended balances, which totaled
approximately $183 million over this time period, from State professional
boards, advisory boards, and committees to other departmental purposes. In
response to FY 2025 OLS Discussion Points, the Department of Law and Public
Safety provided the following chart, which illustrates the amounts reallocated
per board in the Division of Consumer Affairs between FY 2015 and FY 2023.
Further, the FY 2024 Appropriations Act provided language to reallocate up to
$8.5 million, and the FY 2026 Appropriations Act provided language to
reallocate up to $5.0 million.� The department has not provided the OLS with
information on how those amounts, by board, have been reallocated.
*Provided by the Department of Law and
Public Safety in response to FY 2025 OLS Discussion Points.
Section:
Law and Public Safety
Analyst:
Kristin Brunner Santos
Lead 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.).