LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4888

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JULY 21, 2025

 

 

SUMMARY

 

Synopsis:

Establishes AI and Labor Market Study Commission to analyze impact of artificial intelligence on labor market.

Type of Impact:

Annual increase in State expenditures.

Agencies Affected:

Department of Labor and Workforce Development; Department of Education.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual

 

 

State Expenditure Increase

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) determines that the bill will result in an indeterminate increase in annual State expenditures related to the creation of the AI and Labor Market Study Commission.  The level of spending will depend on the recommendations identified by the commission and the construct of any programs developed as a result of those recommendations.   

 

BILL DESCRIPTION

 

      This bill establishes the Artificial Intelligence (AI) and Labor Market Study Commission.  The commission will leverage its expertise in technology along with gathering additional input from independent or sponsored studies in order to assess the impact of AI on the labor market, develop strategies to address job displacement, and identify methods to expand AI-related workforce opportunities.

      Under the bill, the commission will: (1) engage with technology experts and sponsor studies as necessary to understand the potential impacts of AI on the New Jersey workforce; (2) identify high-risk jobs, including those most likely to result in displacement due to AI in the six to 18 months after the bill’s effective date; (3) develop programs to assist displaced workers with enhanced training opportunities; (4) coordinate activities between the Department of Education and the Department of Labor and Workforce Development to implement the tactical and strategic actions recommended by the commission; and (5) provide at least two periodic reports per calendar year to the Governor and the Legislature, which reports will include recommended actions to address job displacement and job development.

      Finally, the bill establishes the Job Transition Fund to support displaced workers and enable transitions to new AI-driven roles through education, training, State job training funds, and job placement services.  The fund will be used for strategic and tactical initiatives identified by the commission’s research activities, and will be administered by the Department of Labor and Workforce Development.  The initial funding source for this fund will be the Workforce Development Partnership Fund.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that the bill will result in an indeterminate increase in annual State expenditures related to the creation of the AI and Labor Market Study Commission and the associated Job Transition Fund.

      The 11-member commission will identify high-risk jobs that are most likely to result in displacement due to AI, develop programs to assist displaced workers, and monitor the expenditures of the Job Transition Fund.  The members of the commission will serve without compensation, which will limit expenditures associated with the commission to reimbursement to the members for necessary expenses incurred in performance of their duties and to any administration costs associated with generating the periodic reports required under the bill.

      The bill will also result in an indeterminate increase in spending from the Workforce Development Partnership Fund, the initial funding source for the newly-established Job Transition Fund.  The Job Transition Fund will be used for strategic and tactical initiatives identified by the AI and Labor Market Study Commission to support displaced workers and enable transitions to new AI-driven roles.  The level of spending will be dependent on the recommendations identified by the commission and the construct of any programs developed as a result of those recommendations.  Given the nature of these future programs, the OLS is unable to accurately estimate the program spending requirements resulting from this bill.

 

Section:

Commerce, Labor and Industry

Analyst:

John Gaudioso

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.).