One-Time Revenue Curb

Lawmakers last week introduced legislation that would restrict New Jersey operating budgets from relying on one-time revenues, with governors required to file spending plans that match recurring revenues.

Gov. Jon Corzine signed an executive order on the initiative June 30, but legislation would strengthen the goal of limiting officials and lawmakers from using one-time revenues to help balance budgets. Assemblyman Ron Dancer, R- Burlington and Mercer, sponsored the bill.

“I believe that if we are all serious about fiscal responsibility, then the next logical step is to put Executive Order 103 into law,” Dancer said in a press release. “As an executive order, this issue could be rescinded by the current or succeeding governor.”

New Jersey budgets relied upon $2.7 billion of one-shot revenues, on average, in fiscal years 2003 through  2006.

The measure also would make into law Corzine’s program to redirect all excess revenue into a debt reduction fund that would help pay down the state’s $32 billion of outstanding debt, its $25 billion pension liability, and its $68.7 billion shortfall in other post-employment benefits. The fund could also use surplus revenue to support infrastructure needs.

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