LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 2402

STATE OF NEW JERSEY

221st LEGISLATURE

DATED: JULY 9, 2025

SUMMARY

Synopsis:	Establishes New Jersey Veterans’ Organization Building Grant Program.
Type of Impact:	Annual increase in State expenditures; annual increase in State revenues.
Agencies Affected:	New Jersey Economic Development Authority.

Office of Legislative Services Estimate
Fiscal Impact	Year 1	Thereafter
State Expenditure Increase	Up to $2 million	Indeterminate
State Revenue Increase	Indeterminate	Indeterminate

· The Office of Legislative Services (OLS) determines that State expenditures will increase by up to $2 million in the first year the bill is in effect for the New Jersey Economic Development Authority to award grants under the program to veterans’ organizations for their building construction and improvement needs.  If the full $2 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $2 million is exhausted. 

· Annual State costs thereafter cannot be determined because these costs will depend on program demand and any additional funding raised from taxpayer contributions or made available for the program through future appropriations.

· The bill does not specify the maximum grant amount or the number of grants to be awarded, leaving these details to the authority’s discretion.  The OLS assumes that the department will utilize a portion of the funds appropriated under the bill for its administrative costs. 

· Additional revenue may be realized from State taxpayers who voluntarily contribute a portion of their tax refund or enclose a separate contribution for the fund.

BILL DESCRIPTION

      This bill establishes the New Jersey Veterans’ Organization Building Grant Program in the New Jersey Economic Development Authority to support veterans’ organizations and their building needs throughout the State.  Grants will be awarded when the buildings are used to assist veterans.  This bill establishes the Veterans’ Organization Building Grant Fund in the Department of the Treasury through which grants will be made, and to which New Jersey taxpayers will be able to voluntarily contribute a portion of their tax refund, or enclose a separate contribution, for the fund.  The Legislature will annually appropriate all monies in the fund for grants under the program.

      There is appropriated from the General Fund $2 million to the authority to fund the Veterans’ Organization Building Grant Program.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS determines that State expenditures will increase by up to $2 million in the first year the bill is in effect for the authority to establish, administer, and award grants to veterans’ organizations for their building construction and improvement needs.  If the full $2 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $2 million is exhausted.   

      The authority is responsible for administering the grant program, including developing criteria for awarding grants, setting application procedures, and overseeing fund distribution.  The bill does not specify the maximum grant amount or the number of grants to be awarded, leaving these details to the authority’s discretion.  The OLS assumes that the department will utilize a portion of the funds appropriated under the bill for its administrative costs. 

      Additional revenue may be realized from application fees collected from grant applicants and from State taxpayers who voluntarily contribute a portion of their tax refund, or enclose a separate contribution for the fund.   The OLS is unable to quantify these potential revenue increases because it cannot be determined at this time the amount of potential application fee collections, if any, and donations from taxpayers that will be realized. 

      Annual State costs after the first year cannot be determined because these costs will depend on program demand and any additional funding raised from taxpayer contributions or made available for the program through future appropriations.

Section:	Authorities, Utilities, Transportation and Communications
Analyst:	Michael D. Walker 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.).