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Click on More here to see S-15, and related bills S-14 and A3688
SENATE, No. 15
STATE OF NEW JERSEY
213th LEGISLATURE
INTRODUCED FEBRUARY 9, 2009
Sponsored by: Senator BARBARA BUONO District 18 (Middlesex)
SYNOPSIS
Amends the Fiscal Year 2009 appropriation act to implement certain components of the Executive's plan to offset shortfalls in State revenues.
CURRENT VERSION OF TEXT As introduced.
An Act to amend "An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2009 and regulating the disbursement thereof," approved June 30, 2008 (P.L.2008, c.35).
Be It Enacted by the Senate and the General Assembly of the State of New Jersey:
1. The following provisions of section 1 of P.L.2008, c.35 are amended to read as follows:
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34 DEPARTMENT OF EDUCATION |
Subject to the enactment of P.L.2009, c. (pending before the Legislature as Senate Bill No. 14 of 2009 or Assembly Bill No. 3688 of 2009), and provided further that the Governor directs that an amount not to exceed $75,000,000 of State aid appropriations for school districts shall be placed in reserve and thereby made unavailable for expenditure by the State, then notwithstanding the provisions of any law, rule, or regulation to the contrary, between February 1, 2009 and June 30, 2009, the Commissioner of Education shall withhold payment of State aid to a school district by an amount equal to the difference between the pension contribution that would have been required to be paid by the school district to the Public Employees’ Retirement System for the 2008-2009 fiscal year notwithstanding the provisions of section 1 of P.L. , c. (pending before the Legislature as Senate Bill No. 14 of 2009 or Assembly Bill No. 3688 of 2009) and the pension contribution required to be paid by the school district to the Public Employees’ Retirement System for the 2008-2009 fiscal year pursuant to the provisions of section 1 of P.L. , c. (pending before the Legislature as Senate Bill No. 14 of 2009 or Assembly Bill No. 3688 of 2009). The commissioner shall determine the amount of State aid to be withheld from each school district in consultation with the State Treasurer. Notwithstanding the provisions of any law, rule, or regulation to the contrary, any amount that a school district is required to deposit into a pension reserve account shall be reduced by the amount of State aid withheld.
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46 DEPARTMENT OF HEALTH AND SENIOR SERVICES |
[Consistent with] Notwithstanding the provisions of P.L.2005, c.237, [$40,000,000] $25,300,000 from the surcharge on each general hospital and each specialty heart hospital is appropriated to fund federally qualified health centers and $14,700,000 is appropriated to the General Fund as general revenue. Any unexpended balance at the end of the preceding fiscal year in the Health Care Subsidy Fund received through the hospital and other health care initiatives account during fiscal year 2008 is appropriated, and notwithstanding the provision of P.L.2005, c.237 or any law or regulation to the contrary, an amount not to exceed $3,000,000 is appropriated from the unexpended balance of such funds, subject to the approval of the Director of the Division of Budget and Accounting, to provide one-time grants to federally qualified health centers in financial distress, as shall be determined by the Commissioner of Health and Senior Services, for the purpose of maintaining adequate access to health care within the State; provided further, however, that such one time grants shall only be awarded pursuant to procedure for applications, criteria for eligibility, qualifications of applicants and any other relevant information as shall be established by the commissioner. The qualifications shall include an agreement by a recipient that the recipient shall allow the commissioner to review its finances and operational performance to ensure that access to health care is maintained and public funds are utilized for their intended purpose.
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62 DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT 50 Economic Planning, Development, and Security 53 Economic Assistance and Security DIRECT STATE SERVICES 05-4525 Workers' Compensation |
Notwithstanding the provisions of R.S.34:15-49 to the contrary, including the reference therein to salaries of judges of the Division of Workers' Compensation determined as a percentage of the annual salary of judges of Superior Court, beginning on January 1, 2009 there shall be no increase paid from appropriations made herein for an annual salary increase for judges of the Division of Workers' Compensation.
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82 DEPARTMENT OF THE TREASURY 70 Government Direction, Management, and Control 74 General Government Services 2026 Office of Administrative Law DIRECT STATE SERVICES 45-2026 Adjudication of Administrative Appeals |
Notwithstanding the provisions of section 4 of P.L.1978, c.67 (C.52:14F-4) to the contrary, including the reference therein to salaries of administrative law judges determined as a percentage of the annual salary of judges of Superior Court, beginning on January 1, 2009 there shall be no increase paid from appropriations made herein for an annual salary increase for administrative law judges.
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FEDERAL FUNDS |
Notwithstanding the provisions of any law or regulation to the contrary, in addition to the federal funds appropriated in the FY 2009 appropriations act, P.L.2008, c.35, there are appropriated to the appropriate executive agencies, subject to the approval of the Director of the Division of Budget and Accounting, such additional federal funds received during this fiscal year pursuant to any federal law authorizing a federal economic stimulus program or any other similar federal program for the purposes, projects, and programs set forth in such law; provided, however, that if the federal law does not delineate the specific purposes, projects, and programs to be funded by the federal funds, the purposes, projects, and programs to be funded by the federal funds shall be subject to the approval of the Joint Budget Oversight Committee, and further provided, however, that the State Treasurer shall report to the President of the Senate, the Speaker of the General Assembly, the Chair of the Senate Budget and Appropriations Committee, and the Chair of the Assembly Budget Committee at least quarterly on the receipt and utilization of all additional federal funds received during this fiscal year pursuant to any federal law authorizing a federal economic stimulus program.
Officials from the appropriate executive agencies are hereby authorized to take such steps, if any, as may be necessary to qualify for, apply for, receive and expend such federal funds and to make such commitments, representations and other agreements as may be required by the federal government to receive federal funds under federal law authorizing the federal economic stimulus program or any other similar federal law. Furthermore, and notwithstanding any other law or regulation to the contrary, officials from the appropriate executive agencies may encumber any of these federal funds appropriated pursuant to this provision prior to entering into any contract, grant or other agreement obligating the federal funds, subject to the approval of the Director of the Division of Budget and Accounting.
(cf: P.L.2008, c.35, s.1)
2. The following general provision is added to P.L.2008, c.35 to read as follows:
Notwithstanding the provisions of any law or regulation to the contrary, such additional sums as may be needed for the payment of interest and/or principal due from the issuance of any bonds authorized under the several bond acts of the State, not to exceed $135,000,000, are appropriated and shall first be charged to the Long Term Obligation and Capital Expenditure Fund, subject to the approval of the Director of the Division of Budget and Accounting.
3. The following general provision is added to P.L.2008, c.35 to read as follows:
Notwithstanding the provisions of any law or regulation to the contrary, there may be transferred from the debt defeasance account established pursuant to section 3 of P.L.2008, c.22 and various capital accounts established pursuant to section 4 of P.L.2008, c.22 in the Long Term Obligation and Capital Expenditure Fund to the Property Tax Relief Fund an amount not in excess of $371,000,000, as revenue to support appropriations in the Property Tax Relief Fund, subject to the approval of the Director of the Division of Budget and Accounting.
4. The following general provision is added to P.L.2008, c.35 to read as follows:
Notwithstanding the provisions of section 5 of P.L.1990, c.44 (C.52:9H-18) or any law or regulation to the contrary, there may be transferred from the Surplus Revenue Fund to the Property Tax Relief Fund an amount not in excess of $275,000,000, as revenue to support appropriations in the Property Tax Relief Fund, subject to the approval of the Director of the Division of Budget and Accounting.
5. This act shall take effect immediately.
STATEMENT
This bill amends the Fiscal Year 2009 appropriation act to implement certain components of the Executive's plan to offset shortfalls in State revenues.
The bill directs the Commissioner of Education to withhold State aid payments to school districts subject to (1) approval of Senate Bill No. 14 or Assembly Bill No. 3688 [SEE BELOW], which provide for reductions in the contributions that local employers must make to the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) during State fiscal years 2009 through 2011, and (2) the Governor directing that an amount of State aid appropriations for school districts shall be placed in reserve and thereby made unavailable for expenditure by the State.
The bill permits the use of $14.7 million in certain revenue currently appropriated to federally qualified health centers (FQHCs), which are projected to be overfunded, to be used as General Fund revenue.
The bill directs that no Fiscal Year 2009 appropriations may be used to provide salary increases to workers’ compensation judges or administrative law judges, retroactive to January 1, 2009.
The bill permits an amount not to exceed $135 million of State general obligation debt service to be paid from the Long Term Obligation and Capital Expenditure Fund.
The bill permits transfer of amounts not in excess of the remaining $365 million in the debt defeasance account and $6 million in the capital accounts in the Long Term Obligation and Capital Expenditure Fund to the Property Tax Relief Fund (PTRF) as revenue to support appropriations from the PTRF.
The bill permits transfer of $275 million from Surplus Revenue Fund (often referred to as the rainy day fund) to the PTRF as revenue to support appropriations from the PTRF.
The bill authorizes administrative actions and appropriations to facilitate the spending during State fiscal year 2009 of additional federal funds that may become available to the State from the federal economic stimulus effort.
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STATEMENT TO
ASSEMBLY, No. 3688
with Assembly Floor Amendments
(Proposed By Assemblyman CRYAN)
ADOPTED: FEBRUARY 5, 2009
These Assembly amendments permit local employers to contribute more than their reduced required contributions to the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) during State fiscal years 2009 through 2011 and provide for the calculation of separate resultant unfunded liabilities for each employer.
The amendments provide that the State Treasurer will reduce for local employers the normal and accrued liability contributions to a percentage of the amount certified annually by the PERS and PFRS, which percentage will be not more than 50% for payments due in State fiscal year 2009; not more than 60% for payments due in State fiscal year 2010; and not more than 80% for payments due in State fiscal year 2011, while allowing a local employer to elect to pay more than the amount proscribed and to be credited with such payment, which will not be included in the employer’s unfunded liability. An employer wishing to pay more than the minimum contributions may elect to pay 75% or 100% of the total required contribution for State fiscal year 2009, 80% or 100% for State fiscal year 2010, and 90% or 100% for State fiscal year 2011. The actuaries for PERS and PFRS will determine for each employer the unfunded liability for any reduced contributions, which liability will be paid by an employer over a period of 15 years.
The Assembly amendments also delete the no longer necessary sections of the bill that authorize the Director of the Division of Investment in the Department of the Treasury, or a municipality, county or other local unit, to create a special reserve fund to accept and invest moneys of local employers for whom pension contribution requirements were adjusted.
The amendments also make certain changes to reconcile the differences between the prior pension contribution phase-in and the provisions of this bill with regard to municipal and county cap exceptions.
SENATE BILL S14
STATEMENT
This bill provides for reductions in the contributions that local employers must make to the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) during State fiscal years 2009 through 2011. It also provides that a local employer may elect to pay more than the reduced required contributions and that separate resultant unfunded liabilities will be calculated for each employer.
The PERS and PFRS, like the other State-administered retirement systems, are funded on an actuarial reserve basis. An actuary for each system annually projects that system's overall liability for benefits to members, retirees and their beneficiaries. The actuary then sets off against this projected liability the system's assets on hand, and its anticipated income from such sources such as return on investments and member contributions. The difference constitutes the system's liability, which must be met through employer contributions; these consist of a "normal contribution," covering the system's liability attributable to the service rendered by covered employees during the year for which the contribution is determined, and an "accrued liability contribution," covering the system's unfunded liability for previous service. The two contribution requirements are computed and certified to employers as a percentage of total compensation.
In recognition of the enormous financial burden that full payments of the PERS and PFRS contributions in State fiscal years 2009 through 2011 will place on local property taxpayers and local budgets during this historically difficult economic period for the State, this bill provides that the State Treasurer will reduce for local employers the normal and accrued liability contributions to a percentage of the amount certified annually by the PERS and PFRS, which percentage will be not more than 50% for payments due in State fiscal year 2009, not more than 60% for payments due in State fiscal year 2010, and not more than 80% for payments due in State fiscal year 2011.
The bill provides that an employer who elects to pay more than the amount proscribed will be credited with such payment and any such amounts will not be included in their unfunded liability. For payments due in each of the respective fiscal years, as previously described, an employer wishing to pay more than the minimum contributions may elect to pay 75% or 100% of the total required contribution for fiscal year ending June 30, 2009, 80% or 100% for fiscal year ending June 30, 2010, or 90% or 100% for fiscal year ending June 30, 2011. The actuaries for PERS and PFRS will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under the bill. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in State fiscal year ending June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets.
The bill provides that for the respective three fiscal years during which local public employers' pension contributions to the PERS and PFRS will be reduced, and for the year thereafter when the employers would again be subject to the full contribution requirement, the affected contribution payments will be exempt from the limits imposed on increases to municipal appropriations set forth in N.J.S.A.40A:4-45.3, the local budget "cap" law, and to the county tax levy set forth in N.J.S.A.40A:4-45.4. The bill also amends current law concerning the calculation of the tax levy growth limitation for the purpose of an increase in the adjusted tax levy for a school district, and the exclusions added to the calculation for the adjusted tax levy for a local unit of government, to account for certain normal and accrued liability pension contribution increases.
Finally, the bill requires the Director of the Division of Pensions and Benefits in the Department of the Treasury to report to the Governor and Legislature, within 180 days after its effective date, on the feasibility and consequences of creating individual employer accounts within the State-administered retirement systems.
