Yesterday in Trenton, the State Senate and the General Assembly introduced and advanced identical bills that would authorize State appropriations for the 2020 Fiscal Year that begins on July 1. S-2020/A-5600 would appropriate $38.7 billion. The bill assumes strong corporate and sales tax receipts. It also assumes that many of the Governor’s proposed revenue enhancements will not be implemented.
The bills would add important funding for a number of programs in individual municipalities. They also include increased Transitional Aid monies (A total of $114.5 million would be available.) and $48 million for a new ‘Shared Services and School District Consolidation Study and Implementation Grant’ program. The bill would increase funding for the State’s ‘Complete Count Commission’ to strengthen support for the 2020 Census.
The budget bills accept the Administration’s proposed diversion of Energy Tax Receipts (ETR) ‘lockbox’ revenues. Until last year, the ETR had always been funded through taxes (Sales and Corporate) levied on energy supplying utilities. Instead, the upcoming budget would again deliver level ETR, as well as CMPTRA funding, with Income Tax dollars.
We expect both Houses to pass an FY 2020 Appropriations bill on Thursday. We will continue our analysis and keep you advised on the bill and the Governor’s response.
Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.