LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5728

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 24, 2025

 

 

SUMMARY

 

Synopsis:

Establishes New Jersey Innovation Authority.

Type of Impact:

Annual State expenditure increase; potential annual State revenue increase.

Agencies Affected:

Department of the Treasury; New Jersey Office of Information Technology in the Department of the Treasury.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 & Thereafter 

 

State Expenditure Increase

Minimum $500,000

Minimum $175,000

 

Potential State Revenue Increase

Indeterminate

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that establishing a New Jersey Innovation Authority will result in a minimum State expenditure increase of $500,000, for salary increases and media and design costs, in the year following the bill’s enactment, and a minimum State expenditure increase of $175,000 for salaries each year thereafter.  The actual annual State expenditure increase will depend on numerous factors, including the degree to which the authority duplicates services and personnel currently housed under the New Jersey Office of Information Technology and whether the authority will require new or additional office space beyond the State’s current real estate portfolio. 

·         The bill provides the authority with considerable latitude to set fees and charges for the use of its platforms and services, as well as the ability to accept donations for its operations from public and private sources, which may result in an indeterminate annual increase in State revenues.

 

 

 

 

 

BILL DESCRIPTION

 

      This bill establishes the New Jersey Innovation Authority in, but not of, the Department of the Treasury as an instrumentality of the State.  The authority will consist of 13 members, nine of which will be public members.  Members will serve without compensation, but the authority may reimburse its members for expenses incurred in the performance of their duties, within the limits of funds appropriated or otherwise made available to the authority for this purpose.

      The day-to-day operations of the authority will be directed and administered by the Chief Innovation Officer for the State of New Jersey.  The Chief Innovation Officer has the ability to appoint, retain, or employ a legal director, engineers, attorneys, accountants, financial experts, and any such officers, agents, employees, and experts, or other persons as it may require for the performance of its duties, without regard to the civil service law.

      The responsibilities of the authority will include serving as the primary authority on technology innovation for the State and advising and providing centralized implementation and delivery services to the State’s executive branch.  These responsibilities include: the development and maintenance of metrics to measure the State’s innovation progress; the identification of opportunities and recommendations regarding innovation projects; the establishment of cost-sharing agreements or recovery mechanisms between the authority and State agencies; the procurement of necessary insurance; the provision of appropriate grants; the acceptance or receipt of public and private funds; the establishment of fees for the authority’s expenses; and the proposal of an annual budget.

      The bill provides that any remaining unencumbered funds appropriated for Permit Modernization or the National Center for Civic Innovation, Inc., or both, may be transferred to the authority for its operations, subject to the approval of the Chief Innovation Officer and the Department of the Treasury.

      Under current law, the New Jersey Office of Information Technology is responsible for developing and maintaining the State’s technical infrastructure, evaluating the feasibility of emerging technologies for use by State agencies to provide public services, and developing a set of metrics to assess each State agency’s progress with respect to the implementation of a modern digital experience.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that establishing a New Jersey Innovation Authority will result in a minimum State expenditure increase of $500,000, for salary increases and media and design costs, in the year following the bill’s enactment, and a minimum State expenditure increase of $175,000 for salaries each year thereafter.  The actual annual State expenditure increase will depend on numerous factors, including the degree to which the authority duplicates services and personnel currently housed under the New Jersey Office of Information Technology, and whether the authority will require new or additional office space beyond the State’s current real estate portfolio. 

      The OLS notes that the State may experience potential annual indeterminate expenditure decreases in the longer term if duplication of New Jersey Office of Information Technology services or personnel reduces the workload or headcount of that office.

      The bill provides the authority with considerable latitude to set fees and charges for the use of its platforms and services, as well as the ability to accept donations for its operations from public and private sources, which may result in an indeterminate annual increase in State revenues.

 

Section:

State Government

Analyst:

Anna Harris

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.).