LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3051
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: FEBRUARY 13, 2025
SUMMARY
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Synopsis: |
Requires Division of Consumer Affairs to hire staff to alleviate professional license application backlog; appropriates $10,000,000 in fiscal years 2026, 2027, and 2028. |
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Type of Impact: |
Annual State expenditure increase; General Fund. |
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Agencies Affected: |
Department of Law and Public Safety. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
FY 2026 through FY 2028 |
Year 4 & Thereafter |
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Annual State Cost Increase |
Up to $10 million |
Indeterminate |
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· The Office of Legislative Services (OLS) estimates the bill will result in a State expenditure increase of up to $30 million over a three-year period for the Division of Consumer Affairs in the Department of Law and Public Safety to hire additional staff to alleviate the professional license application backlog. The bill appropriates $10 million each year in FY 2026 through FY 2028 for this purpose.
· If the full $10 million is not expended in the year of appropriation, the residual amount will be spent in subsequent fiscal years until the full $10 million is exhausted.
· After the initial three-year period, the OLS estimates the State may incur an indeterminate annual cost for continued salaries and benefits for the additional staff.
BILL DESCRIPTION
This bill requires the Division of Consumer Affairs in the Department of Law and Public Safety to hire additional staff to alleviate the professional license application backlog. The bill appropriates $10,000,000 in fiscal years 2026, 2027, and 2028 for the hiring of additional staff.
The various state professional boards are responsible for both the processing of initial license requests and the periodic licensure renewals as required by statute. The bill indicates there is currently a significant backlog of these license requests in several of the regulated professions within the Division of Consumer Affairs. The bill appropriates $10,000,000 in each of the cited three fiscal years to allow for the hiring of additional staff to alleviate the current backlog.
The bill also requires the division to provide an annual report that provides details on the spending authorized by the bill, and the effect of the spending on division staffing and the processing of license applications and renewals.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received on this bill. However, in response to FY 2025 OLS Discussion Points, the Department of Law and Public Safety provided information on State Professional Boards staffing reductions and workload increases.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates the bill will result in a State expenditure increase of up to $30 million over a three-year period for the Division of Consumer Affairs to hire additional staff to alleviate the professional license application backlog. The bill appropriates $10 million each year in FY 2026 through FY 2028 for this purpose. If the full $10 million is not expended in the year of appropriation, the residual amount will be spent in subsequent fiscal years until the full $10 million is exhausted. After the initial three-year period, the OLS estimates the State may incur an indeterminate annual cost for continued salaries and benefits for the additional staff.
The Division of Consumer Affairs professional boards are self-sustaining and historically generate revenues to offset expenses. Prior to FY 2015, these funds were annually carried forward with an expectation of being utilized to offset professional board expenses such as technological advances, expedited processing of licensure, and support enforcement of the profession. As of FY 2015, the Division of Consumer Affairs excess revenue has been utilized to support other Department of Law and Public Safety purposes. The OLS estimates that based on the revenue generated historically in certain State professional boards, the $10 million annually allocated in this bill may be partially, or even fully, supported by Division of Consumer Affairs revenues.
According to the annual Governor’s Budget recommendations from FY 2006 to FY 2025, the number of positions in the Division of Consumer Affairs has decreased by 100 positions; however, the number of boards has increased by 13 since 2002, with the number of license applications and renewals also increasing.
*The State of New Jersey Governor’s FY 2003 to FY 2025 Budgets
During the FY 2025 Budget process, the Department of Law and Public Safety indicated that the professional board staff reductions may be attributed to various factors such as: 1) the challenge of backfilling when employees resigned or retired; 2) an increase in the number of employee retirements during the COVID-19 public health emergency; and 3) retirements following a return to in-office work.
Additionally, the department noted that work assigned to the division has grown as new boards have been created. Specifically, the department indicated that “[t]he boards have increased the issuance of initial licenses by over 110 percent since 2002, rising from approximately 35,000 to nearly 83,000 in 2023…The number of renewals issued by the Boards for all types of licenses, permits, certifications, and other approvals has increased from approximately 500,000 for the 2002-2003 renewal period to approximately 700,000 for the 2022-2023 renewal period.”
Between FY 2015 and FY 2023, budget language permitted the Attorney General to reallocate unexpended balances, which totaled approximately $183 million over this time period, from State professional boards, advisory boards, and committees to other departmental purposes. In response to FY 2025 OLS Discussion Points, the Department of Law and Public Safety provided the following chart, which illustrates the amounts reallocated per board in the Division of Consumer Affairs between FY 2015 and FY 2023.
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Section: |
Law and Public Safety |
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Analyst: |
Lead Fiscal Analyst |
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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.).