SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4420

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 24, 2026

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 4420.

      As amended and reported, this bill amends the "Regional Rehabilitation and Reentry Center Authority Act" to remove a regional rehabilitation and reentry center authority’s (authority) power to place an assessment on the property taxes paid by each resident of a participating county and to instead require participating counties to pay an assessment directly to the authority.  The assessment authorized by the bill is to be determined by the average daily population of the inmates from each county, as certified by the chief financial officer of the authority.  The proportional share of the inmates for each county and, if determined by a separate formula pursuant to the inter-county agreement, the apportionment of any debt service is to be applied to the total revenue needs in the authority’s budget.  The chief financial officer of the authority is to certify the proportional share for each county concerning what the portion is for general operations and what portion is to support debt service.

      Each proportional share of each participating county is to be conveyed to the respective county chief financial officer for inclusion in the county’s annual budget.  The portion of the proportional share assessment for each county pertaining to debt service is to be an eligible cap exception pursuant to P.L.1976, c.68 (C.40A:4-45.1 et seq.).  The Division of Local Government Services in the Department of Community Affairs is to determine whether the amount of the proportional share assessment, as certified by the chief financial officer of the authority, is included as an appropriation in each participating county’s annual operation budget, as a condition of State approval for budget adoption, pursuant to the "Local Budget Law."

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  provide that the fiscal year is to begin on January 1 and end December 31;

      (2)  specify that the proportional share of inmates for each county and, if determined by a separate formula pursuant to the inter-county agreement, the apportionment of any debt service is to be applied to the total revenue needs in the authority’s budget;

      (3)  remove the provision that the budget is introduced on January 26th of each year;

      (4)  provide that when examining the annual budget of a participating county, the Division of Local Government Services in the Department of Community Affairs is to determine whether the amount of the proportional share assessment, as certified by the chief financial officer of the authority, is included as an appropriation in each participating county’s annual operation budget;

      (5)  specify that a county may not increase the county tax levy except for certain amounts certified by the authority’s chief financial officer as the county’s share of the proportional share assessment pertaining to debt service; and

      (6)  make technical changes.

FISCAL IMPACT:

      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.