Sponsored by:
Assemblywoman HEATHER SIMMONS
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Establishes a spending freeze for Fiscal Year 2026; requires excess revenues collected in FY2026 to be deposited in Debt Defeasance and Prevention Fund.
CURRENT VERSION OF TEXT
As introduced.
An Act calling for a spending freeze for Fiscal Year 2026.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any other law to the contrary, for Fiscal Year 2026, the total amounts appropriated from the State General Fund, Property Tax Relief Fund established pursuant to N.J.S.54A:9-25 the “Casino Control Fund” established pursuant to section 143 of P.L.1977, c.110 (C.5:12-143), the Casino Revenue Fund established pursuant to section 145 of P.L.1977, c.110 (C.5:12-145) and the Gubernatorial Elections Fund established pursuant to N.J.S.54A:9-25.1 shall not exceed the total amounts appropriated from those funds in Fiscal Year 2025.
b. (1) Except as otherwise provided in paragraph (2) of this subsection, notwithstanding the provisions of any law to the contrary, for Fiscal Year 2026, any revenue collected in excess of the total amount collected in Fiscal Year 2025 shall be appropriated in Fiscal Year 2027 for deposit into the New Jersey Debt Defeasance and Prevention Fund, established pursuant to section 1 of P.L.2021, c.125 (C.52:9H-2.2).
(2) The requirements of this subsection shall not apply to any source of federal revenue or constitutionally dedicated State revenue.
2. This act shall take effect immediately and shall expire on July 1, 2027.
STATEMENT
This bill establishes a one-year spending freeze by limiting the total amount of State funds that can be appropriated in Fiscal Year 2026. The bill limits the total amounts appropriated from the State General Fund, Property Tax Relief Fund Casino Control Fund, Casino Revenue Fund, and Gubernatorial Elections Fund in Fiscal Year 2026 to the amounts appropriated from those funds in Fiscal Year 2025.
The bill also provides that in Fiscal Year 2026, any revenue collected in excess of the amount collected in Fiscal Year 2025 is required to be appropriated for deposit into the New Jersey Debt Defeasance and Prevention Fund in Fiscal Year 2027. However, this requirements would not apply to any source of federal revenue or constitutionally dedicated State revenue.