LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 474

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: OCTOBER 14, 2026

 

 

SUMMARY

 

Synopsis:

Requires DHS to establish system to ensure distribution of funds for certain support services for General Assistance beneficiaries ceases upon beneficiary's exit from support service.

Type of Impact:

Potential State and county expenditure increases; potential State revenue increase.

Agencies Affected:

Department of Human Services; county governments.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

Potential State Expenditure Increase

Indeterminate

 

Potential County Expenditure Increase

Indeterminate

 

Potential State Revenue Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) concludes that the Department of Human Services and county governments may incur staffing and technology costs to establish or improve upon an existing process to implement the bill’s provisions regarding oversight of funding for certain support services provided under the General Assistance Program.  

 

·         The fiscal impact is indeterminate as: 1) the details of the process established under the bill are at the discretion of the department and 2) current State regulations require the department and county entities to monitor an applicable beneficiary’s eligibility for General Assistance, potentially mitigating the costs attributable to this bill.

 

·         To the extent that efforts under the bill result in the recoupment of State funds that were distributed for applicable support services to formerly eligible beneficiaries, State revenues would increase.

 

 

BILL DESCRIPTION

 

      This bill requires the Department of Human Services to establish a process to ensure that any funding distributed by the Division of Family Development or a county welfare agency to a provider of substance use disorder treatment or housing for support services rendered to a beneficiary of General Assistance cash benefits ceases on the date that the beneficiary is discharged or is no longer receiving services.  The department is authorized to: contact a provider or a beneficiary to determine the date on which services ceased to be provided to the beneficiary and on which funding provided by the division or a county welfare agency should be discontinued; and require a provider to repay the division or a county welfare agency for any funding received for a beneficiary that was already discharged or was no longer receiving services.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the department and county governments may incur indeterminate costs under the bill to establish or improve upon an existing process to implement the bill’s provisions regarding the oversight of funding for certain support services provided under the General Assistance Program.  The General Assistance Program is a State-funded, time-limited program that provides cash and other assistance to low-income individuals without children.  As county welfare agencies are primarily responsible for administering the General Assistance Program, the OLS assumes that county costs may increase, in the form of staffing and technology costs, in order to implement the process.  It is possible that there may be similar types of costs at the State level in order to develop the process.  To the extent that efforts under the bill result in the recoupment of State funds that were distributed for applicable support services to formerly eligible beneficiaries, State revenues would increase.  

      The potential cost and revenue increases are indeterminate as the details of the process required under the bill are at the discretion of the department and, therefore, to be decided.  Additionally, current State regulations direct the department and county entities to monitor an applicable beneficiary’s eligibility for General Assistance.  For example, county welfare agencies are to immediately notify the appropriate staff of the effective date of the closure of a beneficiary’s case regarding the program’s substance abuse initiative.  The department is also authorized to establish and enforce rules, regulations, and directives, including incentives and sanctions, to ensure that public assistance agencies provide General Assistance benefits to eligible recipients in a manner consistent with State law.  To the extent that existing procedures support the oversight provisions required under this bill, the costs and revenues experienced under the bill will be minimized or eliminated.

 

Section:

Human Services

Analyst:

Sarah Schmidt

Principal Research 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.).