Bill Text: NJ A4898 | 2020-2021 | Regular Session | Introduced


Bill Title: Increases amount of required deposit into Surplus Revenue Fund by 20 percent of average revenue growth of preceding six fiscal years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-10-29 - Introduced, Referred to Assembly State and Local Government Committee [A4898 Detail]

Download: New_Jersey-2020-A4898-Introduced.html

ASSEMBLY, No. 4898

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED OCTOBER 29, 2020

 


 

Sponsored by:

Assemblyman  GARY S. SCHAER

District 36 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Increases amount of required deposit into Surplus Revenue Fund by 20 percent of average revenue growth of preceding six fiscal years.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the Surplus Revenue Fund, amending P.L.1990, c.44.

 

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

 

     1.    Section 3 of P.L.1990, c.44 (C.52:9H-16) is amended to read as follows:

     3.    The amount to be annually credited to the Surplus Revenue Fund shall be determined by the State Treasurer in the following manner:

     a.     [He] The State Treasurer shall identify the amount of General Fund anticipated revenue certified by the Governor upon approval of the annual appropriation act for the fiscal year immediately preceding the fiscal year in which a credit to the "Surplus Revenue Fund" is required. 

     b.    [He] The State Treasurer shall determine, from the annual financial report of the General Fund for the fiscal year immediately preceding the fiscal year in which a credit to the "Surplus Revenue Fund" is required, the amount of revenue actually deposited in the General Fund in that fiscal year.  [If in any preceding fiscal year for which a determination under this subsection is to be made, there is a law enacted which will increase the revenue to the General Fund, the yield from that increase for that preceding fiscal year in which the increase is in effect shall be disregarded in determining the amount to be credited to the "Surplus Revenue Fund."]

     c.     The State Treasurer shall determine, from the annual financial reports of the General Fund for the six fiscal years immediately preceding the fiscal year in which a credit to the "Surplus Revenue Fund" is required, the average growth in revenue of those six fiscal years.

     [c.] d.    The amount of the credit to the "Surplus Revenue Fund" shall be an amount equivalent to: (1) [50%] 50 percent of the excess, if there be any, of the amount determined in subsection b. of this section over the amount determined in subsection a. of this section; and (2) 20 percent of the amount determined in subsection c. of this section.  If actual revenue collections pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the fiscal year immediately preceding the fiscal year in which a credit to the "Surplus Revenue Fund" is required are less than the amount of revenue collections pursuant to that act as certified by the Governor upon approval of the annual appropriation act for that fiscal year, the amount of the credit to the "Surplus Revenue Fund" otherwise calculated pursuant to this section shall be reduced by the difference between the amount so certified and the actual collections.

(cf: P.L.1990, c.44, s.3)

 

     2.    This act shall take effect immediately and shall first apply to the first full State fiscal year next following enactment.

 

 

STATEMENT

 

     This bill increases the amount to be deposited into the Surplus Revenue Fund.  Current law provides that if the actual amount of revenue deposited in the General Fund exceeds the amount anticipated in the annual appropriations act, then the Surplus Revenue Fund is to be credited annually with an amount equivalent to 50 percent of the difference between the anticipated revenue collections in the General Fund and the amount of actual revenue collections for the previous fiscal year.  The bill requires, in addition to the amount required under current law, 20 percent of the average growth in revenue of the immediately preceding six fiscal years to also be deposited into the Surplus Revenue Fund.

     The bill also revises provisions of current law concerning the calculation of the amount credited to the Surplus Revenue Fund.  Under current law, if the State enacted a law during the previous fiscal year that resulted in an increase in revenue to the General Fund, then that revenue increase cannot be considered when determining the amount to be credited to the Surplus Revenue Fund in the current fiscal year. The bill removes this requirement, thereby increasing the amounts that would be credited to the Surplus Revenue Fund.

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