New Legislative Session:
Bills Resurface, Cuts Possible

Although the New Jersey legislative session is only two weeks old, NJSBA’s Governmental Relations Department is currently tracking nearly 600 bills.

January 12 marked the beginning of the 214th Session of the New Jersey State Legislature. Lawmakers have already introduced more than 2,800 bills, including many “pre-filed” bills carried over from the previous session.  

Once again pending in the Assembly are bills that would move board member elections to November, while eliminating the vote on school budgets at or below cap. A-1306 (Wolfe/Voss) addresses both issues; A-1308 (Wolfe/Holzapfel) simply addresses the school budget vote.

Subcontracting Bill Absent One notable bill, A-4140 (Oliver), which would have restricted local boards’ ability to subcontract non-educational services, stalled in the Assembly in the previous session and has not been reintroduced.  Another union-backed bill, A-4142 (Cryan), which would require binding arbitration for non-renewal of non-tenured employees, is alive and well in the new session, reintroduced as A-587.

The Senate Education Committee will meet on Feb. 1 to hear testimony about the educational priorities of invited associations and organizations, including NJSBA. The Assembly Education Committee will likely meet for the first time on Feb. 4, but no agenda has been posted.

State Budget Outlook The Assembly Budget Committee heard testimony on Jan. 25 from David Rosen, the Legislative Budget and Finance Officer, who provided a mid-year state budget update. Rosen confirmed that state revenues from major taxes, including the income, sales, corporation business, motor fuels, insurance, estate and casino revenues, continued to decline in the second half of 2009. He said the state’s two major revenues – income and sales taxes – had their worst years ever. Additionally, he confirmed that the current-year shortfall projected through June 30 is likely $1.2 to $1.3 billion. Rosen predicted that the 2010-2011 budget deficit could grow to nearly $10 billion.

With the governor’s budget address tentatively scheduled for March 12, a great deal of uncertainty remains about the proposed school district excess surplus reduction proposed to help solve the 2009-2010 budget shortfall. In addition, the depth of the shortfall projected for the next budget cycle make cuts in school aid funding increasingly likely.

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