A bill strongly supported by NJBIA that requires the state auditor to publish a user-friendly report summarizing the Annual New Jersey Comprehensive Financial Report, a voluminous and technical document which details revenues, costs, assets, and liabilities to convey the state’s overall fiscal health, was passed unanimously by the Assembly on Friday.
Now headed for Gov. Phil Murphy’s desk, bill S-1884/A-4090 (Sarlo, D-36; Oroho R-24) is intended to provide a clearer, easy-to-read understanding of the state’s comprehensive financial situation, which includes off-budget items such as long-term liabilities and the operations of independent state authorities that are not captured in the annual budget document.
“This is a great move forward to bring more awareness to New Jersey’s budget process to the general public,” said NJBIA Chief Government Affairs Officer Christopher Emigholz.
“Our businesses and taxpayers see New Jersey as being an outlier because of what it does on the debt side or on the spending side or on the revenue side,” Emigholz said. “By adding more transparency to the process, it will be good for everyone involved.”
At a minimum, the bill requires the state auditor’s report to include:
- a summary of the state’s financial condition compared to neighboring states
- a summary of the state’s total long-term liabilities compared to those of neighboring states
- a summary of the accuracy of the state’s revenue projections; an accounting of any structural imbalance in the state budget
- a summary of the state’s unrestricted cash reserves compared to those of neighboring states
- an analysis of the potential impacts of an economic recession on the state’s revenues and spending obligations
