LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5232
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 25, 2026
SUMMARY
|
Synopsis: |
Authorizes regional rehabilitation and reentry center authority to determine county proportional share assessment for budget purposes. |
|
Type of Impact: |
Potential county revenue and expenditure increases; potential revenue increase for regional rehabilitation and reentry center authorities. |
|
Agencies Affected: |
Certain Counties, Regional Rehabilitation and Reentry Center Authorities. |
|
Office of Legislative Services Estimate |
||
|
Fiscal Impact |
|
|
|
Potential County Revenue Increase |
Indeterminate |
|
|
Potential County Expenditure Increase |
Indeterminate |
|
|
Potential RRRCA Revenue Increase |
Indeterminate |
|
· The Office of Legislative Services (OLS) concludes that the bill will result in increased property tax levy authority for certain counties that participate in a Regional Rehabilitation and Reentry Center Authority (RRRCA) associated with the exclusion of RRRCA debt service from the 2.5 percent property tax levy cap. This would result in increased county property tax revenue increase, and a corresponding county expenditure increase and RRRCA revenue increase, due to a requirement to appropriate such funds to the RRRCA.
· Affected counties that exclude this category of debt service from the property tax levy cap can expect no net fiscal impact since additional county property tax revenues collected pursuant to the bill will be appropriated to the RRRCA.
BILL DESCRIPTION
In part, the bill amends the 1977 local budget cap law
to add Regional Rehabilitation and Reentry Center Authority debt service as an
exception to the 2.5 percent county property tax levy cap.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result in increased property tax levy authority for certain counties that participate in a Regional Rehabilitation and Reentry Center Authority (RRRCA) associated with the exclusion of RRRCA debt service from the 2.5 percent property tax levy cap. This would result in increased county property tax revenue increase, and a corresponding county expenditure increase and RRRCA revenue increase, due to a requirement to appropriate such funds to the RRRCA. Affected counties that exclude this category of debt service from the property tax levy cap can expect no net fiscal impact since additional county property tax revenues collected pursuant to the bill will be appropriated to the RRRCA.
In August 2025, Camden County and Cumberland County entered into the first agreement for a regional rehabilitation and reentry center, however, work on this project is yet to begin. The OLS is unable to predict future developments relating to the existing agreement, including additional counties that may elect to participate and the financial implications of such expansion. The OLS is also unable to predict whether other RRRCA agreements will be entered into. The OLS is, therefore, unable to predict the exact impact on county property tax collection and the amounts that may be appropriated by a county to an RRRCA.
|
Section: |
Local Government |
|
Analyst: |
Senior 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.).