LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4845
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 9, 2025
SUMMARY
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Synopsis: |
Extends certain provisions of the Municipal Stabilization and Recovery Act for five years. |
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Type of Impact: |
Multi-year increase in State costs. |
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Agencies Affected: |
Department of Community Affairs; Atlantic City. |
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Fiscal Impact |
Until December 1, 2030 |
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State Expenditure Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the State will incur additional indeterminate costs over a multi-year period related to its oversight functions under the Municipal Stabilization and Recovery Act because the bill extends the monitoring period to 14 years from nine years. The only municipality subject to such oversight under the act is Atlantic City.
BILL DESCRIPTION
The bill amends the Municipal Stabilization and Recovery Act to extend, by five years, the length of State monitoring to which a municipality determined by the Department of Community Affairs to be in need of stabilization and recovery is to be subject. The only municipality under State control pursuant to the act is Atlantic City. On June 6, 2016, the department determined that Atlantic City constituted a municipality in need of stabilization and recovery. This determination was based on a review of the city’s property tax ratable base and outstanding debt portfolio. Atlantic City’s proposed recovery plan was rejected by the department on November 1, 2016. On November 9, 2016, the Local Finance Board adopted a resolution granting the Division of Local Government Services broad authority to manage Atlantic City’s municipal affairs.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result in additional indeterminate costs to the State over a multi-year period related to its oversight functions under the Municipal Stabilization and Recovery Act because the bill extends the monitoring period to 14 years from nine years. To the extent that the State incurs any ongoing expenses related to the exercise of its authority over Atlantic City’s municipal governmental functions, these costs will continue for the remainder of the State monitoring period. Because these costs will be incurred over a longer period of time, the State will experience an increase in expenditures. Any increase in State costs will be temporally limited as the bill provides that the State may exercise its discretionary powers under the act for up to an additional five years. Currently, Atlantic City is subject to the terms of the act until the first day of the 109th month following its adoption, which is until December 1, 2025. This bill lengthens the State monitoring period for an additional five years, until December 1, 2030.
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Section: |
Local Government |
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Analyst: |
Senior 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.).