analysis of the new jersey budget - njleg.state.nj.us€¦ · 2016-17 state budgeted $1,402,904...

DEPARTMENT OF TRANSPORTATION

AND

MOTOR VEHICLE COMMISSION

2016 - 2017FISCAL YEAR

ANALYSIS OF THE NEW JERSEY BUDGET

PREPARED BY OFFICE OF LEGISLATIVE SERVICESNEW JERSEY LEGISLATURE • APRIL 2016

NEW JERSEY STATE LEGISLATURE

SENATE BUDGET AND APPROPRIATIONS COMMITTEE

Paul A. Sarlo (D), 36th District (Parts of Bergen and Passaic), ChairBrian P. Stack (D), 33rd District (Part of Hudson), Vice-ChairPeter J. Barnes III (D), 18th District (Part of Middlesex)Jennifer Beck (R), 11th District (Part of Monmouth)Anthony R. Bucco (R), 25th District (Parts of Morris and Somerset)Sandra B. Cunningham (D), 31st District (Part of Hudson)Linda R. Greenstein (D), 14th District (Parts of Mercer and Middlesex)Steven V. Oroho (R), 24th District (All of Sussex, and parts of Morris and Warren)Kevin J. O'Toole (R), 40th District (Parts of Bergen, Essex, Morris and Passaic)Nellie Pou (D), 35th District (Parts of Bergen and Passaic)M. Teresa Ruiz (D), 29th District (Part of Essex)Samuel D. Thompson (R), 12th District (Parts of Burlington, Middlesex, Monmouth and Ocean)Jeff Van Drew (D), 1st District (All of Cape May, and parts of Atlantic and Cumberland)

GENERAL ASSEMBLY BUDGET COMMITTEE

Gary S. Schaer (D), 36th District (Parts of Bergen and Passaic), ChairJohn J. Burzichelli (D), 3rd District (All of Salem, parts of Cumberland and Gloucester), Vice-ChairAnthony M. Bucco (R), 25th District (Parts of Morris and Somerset)John DiMaio (R), 23rd District (Parts of Hunterdon, Somerset and Warren)Gordon M. Johnson (D), 37th District (Part of Bergen)John F. McKeon (D), 27th District (Parts of Essex and Morris)Raj Mukherji (D), 33rd District (Part of Hudson)Elizabeth Maher Muoio (D), 15th District (Parts of Hunterdon and Mercer)Declan J. O'Scanlon, Jr. (R), 13th District (Part of Monmouth)Eliana Pintor Marin (D), 29th District (Part of Essex)Maria Rodriguez-Gregg (R), 8th District (Parts of Atlantic, Burlington and Camden)Troy Singleton (D), 7th District (Part of Burlington)Benjie E. Wimberly (D), 35th District (Parts of Bergen and Passaic)

OFFICE OF LEGISLATIVE SERVICES

Frank W. Haines III, Legislative Budget and Finance OfficerThomas Koenig, Assistant Legislative Budget and Finance Officer

Marvin W. Jiggetts, Director, Central StaffCharles A. Buono, Section Chief, Authorities, Utilities, Transportation, and Communications Section

This report was prepared by the Authorities, Utilities, Transportation, and Communications Section of the Office of LegislativeServices under the direction of the Legislative Budget and Finance Officer. The primary author was Patrick Brennan.

Questions or comments may be directed to the OLS Authorities, Utilities, Transportation and Communications Section (Tel:609-847-3840) or the Legislative Budget and Finance Office (Tel: 609-847-3105).

DEPARTMENT OF TRANSPORTATION AND MOTOR VEHICLE

COMMISSION

Budget Pages....... C-3; C-6; C-14; C-21; C-24; C-26; D-343 to D-362; H-7

Fiscal Summary ($000)

Expended FY 2015

Adjusted Appropriation

FY 2016 Recommended

FY 2017

Percent Change

2016-17 State Budgeted $1,402,904 $1,377,096 $1,520,398 10.4%

Federal Funds 857,866 917,479 901,516 ( 1.7%)

Other 2,103,390 2,355,663 2,242,075 ( 4.8%)

Grand Total $4,364,160 $4,650,238 $4,663,989 .3%

Personnel Summary - Positions By Funding Source

Actual FY 2015

Revised FY 2016

Funded FY 2017

Percent Change

2016-17 State 1,531 1,573 1,582 .6%

Federal 815 826 833 .8%

Other 2,767 2,756 2,766 .4%

NJ Transit 11,075 10,993 11,452 4.2%

Total Positions 16,188 16,148 16,633 3.0%

FY 2015 (as of December) and revised FY 2016 (as of January) personnel data reflect actual payroll counts. FY 2017 data reflect the number of positions funded.

Link to Website: http://www.njleg.state.nj.us/legislativepub/finance.asp

Department of Transportation and Motor Vehicle Commission FY 2016-2017

Highlights

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Motor Vehicle Commission (MVC) • The MVC is recommended to receive gross operating revenues of $297.7 million in FY

2017 after subtracting General Fund contributions and revenues collected by MVC and transferred to other State agencies pursuant to statute, a $23.2 million decrease from FY 2016. After additional transfers to other agencies required by budget language, MVC operating resources will total $271.4 million, down $24.7 million (-8.3%) from projected FY 2016 levels. Most MVC revenues are set by statute at a portion of a variety of driving and security related fees and fines. In FY 2017, the total amount being redirected through budget language from the MVC to the General Fund increases by $28.574 million to $111.553 million in addition to the proportional split of revenue from the luxury and fuel inefficient vehicle surcharge. The total amount of General Fund revenue derived from motor vehicle fees for FY 2017 is $597.3 million, up from $559.2 million in FY 2016, largely reflecting the increase in revenues being redirected from the MVC to the General Fund as well as growth in overall revenue collections. Further, the amount of MVC revenues diverted by budget language to other State agencies increases by $1.5 million, to $26.3 million.

Department of Transportation (DOT) • The recommended FY 2017 base State appropriation for DOT Maintenance and

Operations is unchanged from FY 2016 at $38.1 million. The FY 2016 adjusted appropriation of $118.1 million includes a projected $80 million supplemental appropriation for winter storm expenses, which is not continued in FY 2017. Current and proposed budget language authorizes supplemental funding as needed for DOT winter operations. The actual amount ultimately appropriated in FY 2017 could be significantly higher due to supplemental appropriations during FY 2017 for winter operations.

Transportation Trust Fund (TTF) • The FY 2017 budget recommends a $1.297 billion appropriation to the Transportation

Trust Fund (TTF) subaccounts for debt service, $100.9 million more than the FY 2016 adjusted appropriation, but only $17.2 million higher after accounting for unspent FY 2015 appropriations that supplemented FY 2016 appropriations. The FY 2017 total is composed of $218 million from the petroleum products gross receipts tax, $12 million from transportation oriented authorities, up to $546.2 million from the sales and use tax, with the remaining $520.5 million in revenues from the motor fuels tax. If the appropriation is larger than the TTF’s required debt service payment, then the sales and use tax appropriation is to be reduced accordingly.

• The FY 2017 budget assumes the receipt of $1.6 billion from the Transportation Trust

Fund Authority (TTFA) to fund the annual transportation capital program. There is no provision for pay-as-you-go funding of capital projects in FY 2017 State appropriations to the TTFA. Further, TTFA has no permitted bonding authority for FY 2017 under P.L. 2012, c.13. With no pay-as-you-go funding identified in the proposed budget and no bonding authority, it is not clear how the proposed $1.6 billion in capital projects will be funded.


Highlights (Cont’d)

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• The New Jersey Transportation Capital Plan for FY 2017 is $3.819 billion, a $1.295 billion decrease from FY 2016 (see Budget page H-7). This decrease is largely attributable to a $1.648 billion decline in federal and third-party funding for the capital program. This plan encompasses federal and State Transportation Trust funding that is appropriated in the budget, as well as resources not appropriated in the budget for certain projects undertaken by regional transportation agencies, (e.g., the Port Authority of New York and New Jersey) that benefit New Jersey. Among the factors that comprise this reduction is the end of a funding agreement with the Port Authority of New York and New Jersey to support the State capital program, and nonrecurring federal resiliency funds that were granted to NJ Transit in FY 2016 for Superstorm Sandy related projects.

New Jersey Transit (NJT) • The recommended State General Fund operating subsidy to support NJT for FY 2017 is

$160.9 million, which is $127.7 million more in General Fund support than was provided in FY 2016. The increase in NJ Transit’s General Fund subsidy is necessary to partly offset a $150 million decrease in other reimbursements, most of which is due to decrease of $91 million in support from the New Jersey Turnpike Authority. The State operating subsidy is supplemented in FY 2017 by $204 million in support from the New Jersey Turnpike Authority and $62.1 million from the Clean Energy Fund. The total of these three sources of subsidy for NJ Transit, at $426.9 million, is an increase of $36.7 million (+9.4%) above FY 2016 levels.

• The overall NJT operations budget for FY 2017 is $2.11 billion, a $4.5 million decrease from FY 2016. The agency projects a $20 million decrease in expenditures on materials and supplies, to be offset by a $15.5 million increase in tolls, taxes, and other operating expenses. It is not clear whether this budget reflects recently settled labor contracts with rail workers and the additional labor costs that the agreement entailed.

• Transportation Assistance for Senior Citizens and Disabled Residents is recommended

to decrease to $17.5 million in FY 2017 from $18.8 million in FY 2016. This decrease continues a general trend since FY 2008 when funding totaled $36.9 million. The decrease is linked to the reduction of $15.3 million in casino revenues from FY 2014 to FY 2015. Based on the Executive’s revised estimates for FY 2016 casino tax collections, the level of support in FY 2018 will decrease by approximately $0.3 million.

Background Paper

Gasoline Taxes - Motor Fuels and Petroleum Products Gross Receipts ……………...p. 16


Fiscal and Personnel Summary

AGENCY FUNDING BY SOURCE OF FUNDS ($000)

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Adj. Expended Approp. Recom. Percent Change

FY 2015 FY 2016 FY 2017 2015-17 2016-17

General Fund

Direct State Services $164,462 $125,188 $45,188 -72.5% -63.9%

Grants-In-Aid 40,284 33,156 160,856 299.3% 385.1%

State Aid 0 0 0

Capital Construction 997,894 1,199,928 1,173,480 17.6% -2.2%

Debt Service 0 0 0

Sub-Total $1,202,640 $1,358,272 $1,379,524 14.7% 1.6%

Property Tax Relief Fund

Direct State Services $0 $0 $0

Grants-In-Aid 0 0 0

Capital Construction $182,000 $0 $123,351 -32.2%

Sub-Total $182,000 $0 $123,351 -32.2%

Casino Revenue Fund $18,264 $18,824 $17,523 -4.1% -6.9%

Casino Control Fund $0 $0 $0

State Total $1,402,904 $1,377,096 $1,520,398 8.4% 10.4%

Federal Funds 857,866 917,479 901,516 5.1% -1.7%

Other Funds 2,103,390 2,355,663 2,242,075 6.6% -4.8%

Grand Total $4,364,160 $4,650,238 $4,663,989 6.9% 0.3%

PERSONNEL SUMMARY - POSITIONS BY FUNDING SOURCE

Actual Revised Funded Percent Change FY 2015 FY 2016 FY 2017 2015-17 2016-17

State 1,531 1,573 1,582 3.3% 0.6%

Federal 815 826 833 2.2% 0.8%

All Other 2,767 2,756 2,766 ( 0.0%) 0.4%

NJ Transit 11,075 10,993 11,452 3.4% 4.2%

Total Positions 16,188 16,148 16,633 2.7% 3.0% FY 2015 (as of December) and revised FY 2016 (as of January) personnel data reflect actual payroll counts. FY 2017 data reflect the number of positions funded.

AFFIRMATIVE ACTION DATA

Total Minority Percent-Dept. 32.9% 32.9% N/A ---- ----

Total Minority Percent-NJ Transit 63.4% 64.4% N/A ---- ----


Significant Changes/New Programs ($000)

Budget Item Adj. Approp.

FY 2016Recomm.FY 2017

DollarChange

PercentChange

BudgetPage

5

I. Vehicular Safety – Motor Vehicle Commission Motor Vehicle Services – Other Funds $350,144 $328,194 ($21,950) (6.3%) D-350

The decrease in this line item is driven primarily by a larger shift of Motor Vehicle Services revenues to the General Fund. Motor Vehicle Commission (MVC) funding is the result of a statutory formula which divides various motor vehicle-related charges and fee revenue between the General Fund and the MVC. Combined MVC base revenues actually increased by $13.76 million from $778.21 million to $791.97 million. The decrease in the portion that is provided to the MVC for its operating costs is attributable to additional monies being transferred to the General Fund. FY 2017 proposed language provisions increase the diversion of MVC revenues from $82.979 million to $111.553 million, in addition to the proportional split of revenue from the luxury and fuel-inefficient vehicle surcharge. The increased shift to the General Fund is partly offset by the MVC’s retaining a share of overall revenue growth. The OLS notes that of the total $328.2 million projected above, up to $78.1 million is to be transferred to other agencies for non-MVC uses, either in accordance with statute or pursuant to budget language, of which about $26.3 million is revenue that by law is dedicated to MVC purposes. Thus the portion projected to be retained by the MVC for its FY 2017 operating purposes is about $250 million, a decrease of $24.3 million (-8.8%) from the FY 2016 amount. II. State and Local Highway Facilities Direct State Services-Maintenance and Operations $118,056 $38,056 ($80,000) (67.8%) D-353

The decrease in this line item reflects the elimination of a FY 2016 supplemental funding adjustment of $80 million for winter operations. Winter operations costs above a base amount of $10.34 million are funded through annual supplemental appropriations authorized pursuant to budget language, in part because total costs are not known until late in the fiscal year when winter conditions abate. The recommended base appropriation for FY 2017 is the same as FY 2016. The projected FY 2016 supplemental appropriation for winter operations of $80 million is $32.7 million lower than the amount of the supplemental appropriation approved in FY 2015 of $112.7 million. If the estimated need for FY 2016 supplemental funding is accurate, and the average of FY 2015 and FY 2016 supplemental funding is the worst case scenario for FY 2017, then the department will require an additional $96 million to meet next winter’s operating costs.


Significant Changes/New Programs ($000) (Cont’d)



DollarChange

PercentChange

BudgetPage

6

III. Special Transportation Trust Fund Transportation Trust Fund – Subaccount for Debt Service for Prior Bonds $1,039,370

$951,992 ($87,378) (8.4%) D-354 Transportation Trust Fund – Subaccount for Debt Service for Prior Bonds (PTRF) $0 $123,351 $123,351 D-354 Transportation Trust Fund – Subaccount for Debt Service for Transportation Program Bonds $156,558 $221,488 $64,930 41.5% D-354 Total Transportation Trust Fund Debt Service $1,195,928 $1,296,831 $100,903 8.4%

In sum, these appropriations comprise the total debt service costs for Transportation Trust Fund Authority bonds. The appropriations for debt service on prior bonds, totaling about $1.075 billion, are to fund debt service on about $12.6 billion in outstanding bonds issued under statutory authority predating the enactment of P.L. 2012, c.13, the last renewal of the Transportation Trust Fund Authority’s bond financing powers. The line item for debt service on program bonds reflects debt service on about $3.4 billion in outstanding bonds issued under P.L.2012, c.13. Pursuant to statute, there is no remaining bonding authorization for Transportation Trust Fund Authority. It is not clear at this time what, if any, additional bonding authority will be authorized for FY 2017, or what the resulting need for additional funding to support FY 2017 debt service payments might be if additional borrowing is authorized. FY 2017 combined debt service appropriation is $1.297 billion, an increase of $100.9 million over the $1.196 billion appropriated for FY 2016. The FY 2016 appropriation was supplemented by $83.7 million of unused debt service appropriation which was carried forward into FY 2016, resulting in actual debt service resources in FY 2016 of about $1.28 billion. The total increase in resources appropriated for debt service for FY 2017 is thus about $17.2 million. Supplementary County Highway Aid $4,000 $0 ($4,000) (100.0%) D-354

In FY 2015 and 2016 the Legislature initiated the appropriation of $4 million for the county aid program, for certain urban counties that were appropriated less county aid after FY 2013 due to a change in the county aid formula in N.J.S.A.27:1B-25. The additional funding permitted these urban counties to receive a level of aid equal to their FY 2013 aid award. The budget makes no provision for this aid supplement in FY 2017.





DollarChange

PercentChange

BudgetPage

7

IV. Public Transportation – New Jersey Transit Corporation p. D-359 Revenues

1. Total State Appropriation $33,156 $160,856 $127,700 385.1%

2. NJT Resources:

Farebox Revenue $1,005,300 $1,023,100 $17,800 1.8%

Other Commercial Revenue $115,200 $115,200 0 —

Other Reimbursements $961,800 $811,800 ($150,000) (15.6%)

Total Income $2,115,456 $2,110,956 ($4,500) ( .2%) Analysis of the details of NJ Transit’s spending plan is not feasible, because budget information does not provide the data necessary to discern how NJ Transit plans to allocate FY 2017 funds across its lines of business, e.g., rail and bus. Budget data was only provided in the aggregate on an agency-wide basis. NJ Transit’s operating budget is proposed to decrease by 0.2% or $4.5 million in FY 2017. The total operating subsidy through the state budget to NJ Transit will increase from $390.2 million to $426.9 million. The FY 2017 subsidy is composed of $204 million in support from the New Jersey Turnpike Authority, $62.1 million from the Clean Energy Fund, and $160.9 million in support from the General Fund. The increase in the General Fund component of NJ Transit’s subsidy is necessary due to a $150 million decrease in other reimbursements. $91 million of that amount is due to a reduction in support from the New Jersey Turnpike Authority, from $295 million in FY 2016 to $204 million in FY 2017. It is not clear what causes the remaining $59 million in decreased reimbursements, but is likely a combination of decreased State and Federal capital funds that are authorized to be used for NJ Transit operating support. The OLS notes that it is also unclear whether the summary of NJ Transit’s financial information in the FY 2017 budget takes into account any impact that recent contract settlements with several of its employee bargaining units might have on either FY 2016 or FY 2017 operating costs.





DollarChange

PercentChange

BudgetPage

8

Transportation Assistance for Senior Citizens and Disabled Residents (Casino Revenue Fund) $18,824 $17,523 ($1,301) (6.9%)

Casino Revenue Fund dollars provide the full State support for the county transportation systems, which are responsible for providing transportation to elderly and disabled residents. This year’s 6.9% decrease continues a general downward trend in funding since FY 2008 as a result of declining casino tax revenues. The amount provided in FY 2008 was $36.9 million; hence, the recommended appropriation of $17.5 million for FY 2017 reflects a decline of over 50% since the FY 2008 peak. The response to the funding reduction has varied by county, with most engaging in a combination of reduced services, and increased funding from a variety of sources, including county, federal, and commercial (advertising) revenue.


Significant Language Changes

EXPLANATION: FY 2016 language not recommended for FY 2017 denoted by strikethrough. Recommended FY 2017 language that did not appear in FY 2016 denoted by underlining.

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Motor Vehicle Commission Revenue – Funding Shift

Revision

2016 Handbook: p. B-165 2017 Budget: p. D-351

The amount appropriated to the New Jersey Motor Vehicle Commission is based on proportional revenue collections for that fiscal year pursuant to the statutes listed in subsection a. of section 105 of P.L.2003, c.13 (C.39:2A-36). Of that amount, $2,500,000 is appropriated for transfer to the Interdepartmental Property Rental and Household and Security accounts, $5,150,000 is appropriated for transfer to the Department of Transportation for the Maintenance and Operations program, $4,800,000 $5,800,000 is appropriated for transfer to the Division of Revenue and Enterprise Services within the Department of the Treasury, $612,000 is appropriated for transfer to the Division of State Police, and $800,000 is appropriated for transfer to the Bureau of Forestry within the Department of Environmental Protection and $519,000 is appropriated for its Forest Fire Fighting Program transfer to the Department of the Treasury for Property Management and Construction - Property Management Services. In addition, the New Jersey Motor Vehicle Commission shall pay the non-State hourly rate charged by the Office of Administrative Law for hearing services, or an amount no less than $500,000, subject to the approval of the Director of the Division of Budget and Accounting.

Explanation

The recommended budget language directs an additional $1.519 million in Motor Vehicle Commission revenue to the Department of Treasury, thereby reducing the Department of Treasury’s need for support from the General Fund. As a result, this amount is no longer available to support commission operations. The total amount of motor vehicle fees being directed to the other departments in FY 2017 is about $26.3 million, excluding transfers to other agencies associated with the emergency medical service helicopter program and the Commercial Vehicle Enforcement program (which are not earmarked as MVC operating revenues).

Motor Vehicle Revenue – Funding Shift

Revision 2016 Handbook: p. B-165 2017 Budget: p. D-351

Notwithstanding the provisions of section 105 of P.L.2003, c.13 (C.39:2A-36) or any law to the contrary, $72,979,000 $101,553,000 is appropriated from the revenues appropriated to the New Jersey Motor Vehicle Commission for deposit in the General Fund to reflect continuing savings initiatives, subject to the approval of the Director of the Division of Budget and Accounting.


Significant Language Changes (Cont’d)


10

Explanation

This change in budget language directs an additional $28.574 million in MVC revenue to the General Fund as State revenue, decreasing the amount of Motor Vehicle Fees allocated to support commission operations. The total amount of Motor Vehicle Fees being directed to the General Fund in FY 2017, $111.553 million (in addition to the MVC’s proportional share of luxury and fuel inefficient vehicle fees), is a $28.574 million (34.4%) increase over FY 2016.

Transportation Program Bonds – Nonrecurring Debt Service Balances

Deletion 2016 Handbook: p. B-167 2017 Budget: n/a

The unexpended balance of $47,788,000 in the Transportation Trust Fund Subaccount for Debt Service for Transportation Program Bonds is hereby appropriated to the Transportation Trust Fund Subaccount for Debt Service for Transportation Program Bonds to pay debt service on the Transportation Program Bonds.

Explanation

The deleted language carried forward $47.788 million in unspent FY 2015 debt service appropriations for Transportation Program Bonds to be used in FY 2016. The appropriation for debt service payments on Transportation Program Bonds increases from $156.558 million in FY 2016 to $221.488 million in FY 2017, in part to replace these nonrecurring balances. Outstanding Transportation program bonds permitted under P.L. 2012, c.13 will total about $3.4 billion at the end of FY 2016.

Prior Bonds – Nonrecurring Debt Service Balances


The unexpended balance of $35,934,000 in the Transportation Trust Fund Subaccount for Debt Service for the Prior Bonds is hereby appropriated to the Transportation Trust Fund Subaccount for Debt Service for the Prior Bonds to pay debt service on the Prior Bonds.




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Explanation

The deleted language carried forward $35.934 million in unspent FY 2015 debt service appropriation for Prior Bonds to be used in FY 2016. The total amount available for debt service payments on Prior Bonds increases from about $1.039 billion in FY 2016 to about $1.075 billion in FY 2017 to replace these nonrecurring balances. Prior bonds represent all bonding amounts authorized prior to the enactment P.L. 2012, c.13. As of November 2014, all bonding authority linked to prior bonds has been issued, and will require $25.4 billion in aggregate debt service payments through FY 2042.

Capital Program – Dedicated Revenues

Revision 2016 Handbook: p. B-167 2017 Budget: p. D-355

The amount hereinabove appropriated for the Transportation Trust Fund Subaccount for Debt Service for Prior Bonds and for the Transportation Trust Fund Subaccount for Debt Service for Transportation Program Bonds shall be provided from revenues from (i) motor fuel taxes, which are hereby appropriated for such purposes pursuant to Article VIII, Section II, paragraph 4 of the State Constitution; (ii) $215,000,000 $218,064,000 from the petroleum products gross receipts tax, which is hereby appropriated for such purposes pursuant to Article VIII, Section II, paragraph 4 of the State Constitution; and (iii) $452,928,000 $546,217,000 from the sales and use tax which is hereby appropriated for such purposes pursuant to Article VIII, Section II, paragraph 4 of the State Constitution.

Explanation

As in past years, the FY 2017 budget recommends language directing the appropriations for Transportation Trust Fund debt service subaccounts to be provided from revenues dedicated under the Constitution and under specified State laws, and from funds receivable under contract from various “transportation-oriented” (i.e., toll road) authorities. The minimum amounts dedicated under the Constitution include: (1) $200 million from sales and use tax revenue, (2) $200 million from petroleum products gross receipts tax revenue, and (3) an amount equal to $0.105 per gallon of revenue from the motor fuels tax, or a minimum of $483 million, pursuant to P.L.2006, c.3. These amounts together provide a minimum of $883 million. In addition to the minimum constitutionally required amounts dedicated to the TTF, the recommended budget language provides for further increases to the amounts appropriated from the above sources of revenue. The language increases the contribution from the petroleum products gross receipts tax by $18.064 million




12

to $218.064 million, and the sales and use tax appropriation by $346.217 million to $546.217 million. The amount contributed from the motor fuels tax is not specified through language but can be calculated to be $520.5 million, $37.5 million over the minimum established in P.L.2006, c.3. FY 2017 budget language also provides $12 million through payments from toll road authorities. These additional amounts appropriated for debt service represent amounts that would have otherwise been available in the General Fund. The total amount of funding provided to the Transportation Trust Fund Account is $1.297 billion in FY 2017, of which the entire amount is dedicated to FY 2017 debt service. The appropriation is $100.9 million more than the debt service appropriation for FY 2016, which was supplemented by $83.7 million in unspent FY 2015 debt service appropriations which were carried forward into FY 2016.

Capital Program – General Fund


The amount appropriated hereinabove for Supplementary County Highway Aid shall be allocated in order that each county allocation from Supplementary County Highway Aid and from the revenues and other funds of the New Jersey Transportation Trust Fund Authority for the county aid program shall not be less than the aid received by each county in FY 2013 under the county aid program provided, however, in the event that the amount appropriated for Supplementary County Highway Aid is insufficient for this purpose the aid that would have been received for each county pursuant to this provision shall be proportionately reduced.

Explanation

The deleted language required allocation of additional funding for certain urban counties that were appropriated less county aid after FY 2013 due to a change in the county aid formula in N.J.S.A.27:1B-25. In both FY 2015 and 2016 an additional $4 million was appropriated for the county aid program, which permitted these urban counties to receive a level of aid equal to their FY 2013 aid award. This language and funding have been eliminated, so the distribution formula in N.J.S.A.27:1B-25 will apply to whatever amount is appropriated in FY 2017 for the county aid program. It is not known at this point how much the county aid program will be appropriated in FY 2017; the draft FY 2017 capital program has not yet been submitted to the Legislature despite the March 1 deadline set under N.J.S.A.27:1B-22.




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Capital Program – General Fund

Revision 2016 Handbook: p. B-169

to B-171 2017 Budget: p. D-356

Notwithstanding the provisions of P.L.1984, c.73 (C.27:1B-1 et al.) or any law or regulation to the contrary, there is appropriated up to the sum of $1,247,000,000 $1,600,000,000 from the revenues and other funds of the New Jersey Transportation Trust Fund Authority, for capital purposes as follows: Airport Assets Bridge Assets Capital Program Delivery Congestion Relief Local System Support Mass Transit Assets Multimodal Programs Road Assets Safety Management Transportation Support Facilities

Explanation

The recommended language authorizes Transportation Trust Fund Authority support for the FY 2017 transportation capital program and establishes $1.6 billion as the maximum level of such support. The language indicates the categories of “capital purposes” to be funded from the TTFA. In the Appropriations Act, the projects within the several categories will be individually specified; as in past years, the list of proposed projects was not finalized in time for its inclusion in the budget recommendations.

The recommended budget language continues the $1.6 billion level of annual appropriations for the State transportation capital program that has prevailed for several consecutive fiscal years, by increasing the amount appropriated from the Transportation Trust Fund Authority for capital purposes by $353 million from FY 2016. This mirrors a corresponding $353 million decrease in anticipated capital project expenses by the Port Authority of New York and New Jersey (p. D-354, Project Costs – Other Parties). This funding was part of a $1.8 billion funding agreement between the State and Port Authority of New York and New Jersey over the FY 2012 to FY 2016 period. The specific projects funded under this agreement can be found in the language provision on page D-357 of the FY 2017 Governor’s Budget Message.




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Capital Program – Federal Funds

Addition 2016 Handbook: n/a 2017 Budget: p. D-357

Notwithstanding the provisions of any law or regulation to the contrary, there are appropriated to the Department of Transportation for transportation capital projects such amounts as shall be approved by the Director of the Division of Budget and Accounting from the revenues and other funds of the New Jersey Transportation Trust Fund Authority received in connection with the issuance of the Authority's Indirect Grant Anticipation Revenue Vehicles (Indirect GARVEE) Bonds. Federal funds received in conjunction with transportation capital projects are appropriated to the Authority to pay debt service and other costs related to the Indirect GARVEE Bonds.

Explanation

The recommended language appropriates any revenue generated from the issuance of Indirect GARVEE bonds by the Transportation Trust Fund Authority to the department for transportation capital projects. A GARVEE bond is a bond issue for which the debt service payments are made with the revenues from future federal grants. Existing language on page D-356 concerns the use of federal funds to repay GARVEE bonds issued to fund the Route 52 Causeway Replacement Project which originally appeared in the budget in FY 2006. This language represents the first appropriation of federal funds for the repayment of Indirect GARVEE bonds. Unlike Direct GARVEE bonds, Indirect GARVEE bonds are not considered a federal financing tool. When the State completes a federally funded transportation project, it submits to the federal government for reimbursement of those project expenses. The reimbursement of these funds, once all project conditions have been met, are considered State funding, and their use is not subject to federal regulation. An Indirect GARVEE bond is a bond issued against the anticipated receipt of these federal reimbursement payments. It is not clear at this time how much debt the department intends to issue through Indirect GARVEE bonds, the repayment term, or the projects to be supported through the bonds. The OLS notes that GARVEE bonds issued in 2006 were counted against the bonding limits then in effect for the Transportation Trust Fund Authority.




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Public Transportation – Transportation Authority Support


Notwithstanding the provisions of any law or regulation to the contrary, of the amounts hereinabove appropriated for New Jersey Transit Corporation from the General Fund, an amount not to exceed $29,000,000 thereof shall be paid from funds received or receivable from the various transportation-oriented authorities pursuant to contracts between the authorities and the State for transportation purposes.

Explanation

Under agreements between the State Treasurer and the New Jersey Turnpike Authority and the South Jersey Transportation Authority, the State receives authority funds for various transportation related purposes. $53.5 million is anticipated in FY 2016 as schedule 1 revenue from these agreements, and an additional $295 million is anticipated in Schedule 2 revenue from the New Jersey Turnpike Authority and appropriated to the New Jersey Transit Corporation. In FY 2017, the amount of schedule 1 revenue anticipated is $24.5 million, a reduction of $29 million, which is reflected in the deletion of this line item which appropriated that $29 million to the New Jersey Transit Corporation as part of the State operating subsidy. $204 million in schedule 2 revenue from the New Jersey Turnpike Authority is proposed for FY 2017, reflecting a further reduction of $91 million in funding for NJ Transit from transportation authority sources. This is the result of a funding agreement with the New Jersey Turnpike Authority that expires at the end of FY 2016, and presumably has been renewed at a lower level than the previous funding agreement. The State General Fund appropriation for NJ Transit operating support is $160.9 million in FY 2017, up by $127.8 million from $33.1 million in FY 2016. This increase means that other General Fund sources are more than replacing the lost revenue from lower contributions by the transportation oriented authorities.


Background Paper: Gasoline Taxes - Motor Fuels and Petroleum Products Gross Receipts

16

Budget Pages.... C-3; D-355

New Jersey imposes two taxes on the sale of gasoline and diesel fuel, a Motor Fuels Tax and a Petroleum Products Gross Receipts Tax, which are collectively referred to as the “gas tax.” In addition to these taxes, the federal government imposes a national excise tax on the sale of gasoline and diesel fuel sales (collectively, the “federal Motor Fuels Tax”). There are no local taxes on motor fuels in New Jersey. The combined federal, State, and local rate of taxation in New Jersey is the third lowest in the country at 32.9 cents per gallon for gasoline and the fifth lowest in the country at 41.9 cents per gallon for diesel. New Jersey Motor Fuels Tax The primary State tax on gasoline and diesel fuel is the Motor Fuels Tax (C.54:39-101 et seq.), which currently equals 10.5 cents per gallon on gasoline and 13.5 cents per gallon on diesel and kerosene fuel. In addition, liquefied petroleum gas is taxed at 5.25 cents per gallon and aviation fuel distributed to a general aviation airport is taxed at 2.0 cents per gallon. The Motor Fuels Tax was established in 1927 at 2.5 cents per gallon on all fuels. It was increased seven times, the last time to its current rate of 10.5 cents per gallon on July 1, 1988 (see Table 1). When the Transportation Trust Fund Authority (TTFA) was created in 1985, a portion of Motor Fuels Tax revenue began to be constitutionally dedicated to State transportation system costs. The initial constitutional dedication was 2.5 cents per gallon of the taxed fuel. The constitutional dedication was subsequently increased four times, to 7.0 cents, 8.0 cents, 9.0 cents and lastly to 10.5 cents per gallon of gasoline and diesel fuel in 2007, where it currently remains (Table 1). The Motor Fuels Tax was initially imposed on the consumer and collected by the retailer at the point of retail sale; however, 2010 changes to the Motor Fuels Tax require that the tax be pre-collected by the Division of Taxation (division) in the Department of the Treasury at the wholesale level from motor fuel suppliers. A supplier is typically an oil refinery or terminal. There are fewer than ten motor fuel suppliers in the State, vastly reducing the number of taxpaying entities that the division must interact with for tax collection purposes. A large portion of fuel sales in the State are by in-State suppliers to in-State distributors. The tax collection system permits qualified distributors to delay payment of Motor Fuels Tax to suppliers until the 20th of the month following purchase. This allows motor fuels to travel the full length of the supply chain from supplier to distributor to retailer to final consumer without requiring qualified distributors or retailers to “carry” the cost of the tax until the fuel has been sold to a final consumer. Under this arrangement, a gas station typically delays its payment to a qualified distributor until the next motor fuel shipment arrives, allowing the gas station to sell the motor fuel before paying for the fuel and the tax. The qualified distributor then is able to make its Motor Fuels Tax payment with the proceeds from its sale to the retailer. In order to be a qualified distributor in this State, the distributor must post a bond against its gas tax payment equal to 300 percent of its largest Motor Fuels Tax payment in the prior 12 month period. Once electing to delay its Motor Fuels Tax payment, the qualified distributor becomes responsible for any penalties and interest for late payments, rather than the supplier. For any sales of motor fuel by out-of-state suppliers to distributors for use in-State, a qualified distributor is required to remit the tax due to the division within three days of the motor fuel entering the


Background Paper: Gasoline Taxes - Motor Fuels and Petroleum Products Gross Receipts (Cont’d)

17

State. All distributors that have elected to not delay their tax payments are required to remit the tax due to the supplier at the time of purchase. Certain uses are exempt from the Motor Fuels Tax, including: 1) Certain autobuses, including those used or contracted with NJ Transit and county transportation agencies and those paying monthly franchise taxes to municipalities; 2) Agricultural tractors not used on public highways; 3) Farm machinery; 4) Aircraft; 5) Ambulances and first-aid vehicles; 6) Fire engines and fire fighting vehicles; 7) Off-road use of on-road vehicles; 8) Non-highway equipment such as mixers, forklifts, pumps, cranes, etc.; 9) Fuel used as a solvent for cleaning; 10) Fuel used for heating and lighting equipment or generators; 11) Vehicles that operate exclusively on rails; 12) Boats and other watercraft for specific authorized uses, including Boy Scouts, oystering, sight-seeing, and commercial fishing; 13) Rural free delivery carriers; 14) Sales to government entities including federal, State, and State sub-divisions; 15) Exports to other states or countries; and 16) 3.0 cents per gallon of the diesel fuel is exempt when used by a passenger vehicle with a gross weight under 5,000 lbs. Motor Fuels Tax Revenues In FY 2015, the Motor Fuels Tax generated $535.6 million in State revenue. Of this amount, $516.0 million was appropriated into the TTFA and the remainder was appropriated for other unspecified purposes. Historically, the trend in Motor Fuels Tax revenue has correlated to trends in population growth and development patterns. For instance, Motor Fuels Tax revenue grew at an annualized 2.03 percent rate from FY 1989, when the current tax rates were set, through FY 2004. This was a period of average economic growth and rapid real estate development in the State. Motor Fuels Tax revenue then declined by an annualized rate of 1.75 percent from FY 2007 through FY 2011. This was a recessionary period that included a housing crisis which severely reduced real estate development activity. The FY 2016 Motor Fuels Tax projection of $556.6 million included in the FY 2017 Governor’s Budget Message is $32.3 million above the FY 2011 total, an annualized growth rate of 1.21 percent. However, annual revenue collections since the recent low point in FY 2011 have fluctuated. This volatility coincides with a period of highly variable retail motor fuel prices and a relatively slow recovery from the Great Recession of 2008-2009. The uneven revenue performance since FY 2004 complicates Motor Fuels Tax revenue projections. Contributing factors to stagnant Motor Fuels Tax revenue collections include a shift in real estate development back into cities, increasing automobile fuel efficiency, lower rates of population growth, and a higher rate of household formation in urban areas relative to suburban areas. To the extent that these factors continue, they may inhibit future growth in Motor Fuels Tax revenue under the existing tax rates. On the other hand, the significant decline in retail prices for motor fuels in the last two years has likely encouraged increased driving, higher fuel consumption, and increased Motor Fuels Tax revenue. The Executive increased its FY 2016 Motor Fuels Tax revenue estimate by $15.6 million since the enactment of the appropriations act, from $541.0 million to $556.6 million.



18

Motor Fuels Tax revenue and tax rates since the creation of the TTFA are as follows: Table 1

State Rates and Distribution of Motor Fuel Taxes ($ in Millions)

Dedication of Tax Revenue Total Tax To Transportation Trust Fund Revenue

Year Gas Rate Diesel Rate Statutory Constitutional 1985 8.0 11.0 2.5 2.5 $296.2 1986 8.0 11.0 2.5 2.5 318.2 1987 8.0 11.0 2.5 2.5 321.1 1988 8.0 11.0 2.5 2.5 327.0 1989 10.5 13.5 7.0 2.5 416.7 1990 10.5 13.5 7.0 2.5 404.9 1991 10.5 13.5 7.0 2.5 390.8 1992 10.5 13.5 7.0 2.5 393.6 1993 10.5 13.5 7.0 2.5 411.6 1994 10.5 13.5 7.0 2.5 436.5 1995 10.5 13.5 7.0 2.5 456.9 1996 10.5 13.5 7.0 2.5 448.7 1997 10.5 13.5 7.0 2.5 463.0 1998 10.5 13.5 7.0 7.0 476.1 1999 10.5 13.5 8.0 8.0 483.2 2000 10.5 13.5 9.0 9.0 506.4 2001 10.5 13.5 9.0 9.0 516.4 2002 10.5 13.5 9.0 9.0 523.8 2003 10.5 13.5 9.0 9.0 530.9 2004 10.5 13.5 9.0 9.0 566.8 2005 10.5 13.5 9.0 9.0 547.3 2006 10.5 13.5 9.0 9.0 550.9 2007 10.5 13.5 10.5 10.5 561.9 2008 10.5 13.5 10.5 10.5 563.2 2009 10.5 13.5 10.5 10.5 538.2 2010 10.5 13.5 10.5 10.5 535.3 2011 10.5 13.5 10.5 10.5 524.2 2012 10.5 13.5 10.5 10.5 539.7 2013 10.5 13.5 10.5 10.5 524.6 2014 10.5 13.5 10.5 10.5 530.4 2015 10.5 13.5 10.5 10.5 535.6 2016est. 10.5 13.5 10.5 10.5 556.6 2017est. 10.5 13.5 10.5 10.5 545.6

Rates in cents/gallon. Dedication applies to allocations of both the gas and diesel rate.

Source: Transportation Trust Fund Authority and FY 2017 Governor’s Budget Message.



19

Table 2

New Jersey Petroleum Products Gross Receipts Tax In 1991, the State established a Petroleum Products Gross Receipts (PPGR) tax. This tax is imposed on the gross receipts from the first sale of petroleum products in New Jersey. This includes gasoline and diesel fuel, as well as a variety of other non-fuel petroleum products. The tax is imposed at two rates. Non-fuel petroleum products are taxed at a rate of 2.75 percent of the gross receipts from their first sale in the State. The tax on fuel oils, aviation fuels, and motor fuels is converted into a cents-per-gallon rate, initially in 1990 based on 2.75 percent of the retail price per gallon of gasoline but not less than a minimum 4.0 cents per gallon. This was subject to semi-annual adjustment, but the retail price never increased to a point that adjustment above the minimum was required. In 2000, the calculation was fixed to a retail pricing date that had the effect of fixing the rate to 4.0 cents per gallon. The products subject to the 2.75 percent tax rate include: 1) Non-residential heating propane; 2) Paint thinners, cleaners, and solvents; 3) Lubricating oils (WD-40, mineral oil, petroleum jelly, motor oil, transmission fluid, etc.); 4) Asphalt cement and road oil; 5) Paraffin wax; 6) Petroleum coke (used in steel manufacturing); 7) Liquid refinery gases (butane for lighters); 8) Rocket fuels; and 9) Various oil-based consumer goods (baby oil, lotions, cold cream, cooking spray, furniture polish, makeup remover, mineral wax, paint thinner, nail polish remover, etc.). Manufactured products that are not considered petroleum products and thus not subject to the PPGR tax include plastics, candles, animal feed, anti-freeze, roofing shingles, rubber tires, synthetic fibers, and medicated lip balms or petroleum jelly (if an active medical ingredient is added.) For items taxed at the 2.75 percent rate, the division collects the tax from firms that first sell petroleum products in New Jersey. Typically, a refiner or importer is the entity responsible for payment when the product is first sold at the terminal level.

$200

$250

$300

$350

$400

$450

$500

$550

$600

Motor Fuels Tax RevenueBy Fiscal Year, $ in Millions



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The division imposes the 4.0 cents per gallon PPGR tax on fuel suppliers directly. The supplier is responsible for making quarterly PPGR tax payments on the 25th of the month following the end of the quarter. Although the 25th is the date when the final balance of the quarterly payment is due, suppliers are required to make monthly payments to the division based on estimated fuel sales. The amount due on the 25th is the remaining balance when the tax documents are filed and the final accounting is performed on the total fuel sales by the supplier. Heating fuels used for residential heating are exempt from the PPGR tax. To simplify PPGR tax collection, the division permits companies whose primary business is the sale of propane and heating oil for residential heating and companies that blend petroleum products into other petroleum products to become direct pay permit holders. A direct pay permit allows a company to purchase fuels from suppliers PPGR tax-free. Permit holding companies are thus treated like suppliers and required to make their PPGR tax payments on the 25th of the month following each quarter for their taxable fuel purchases, which consist mostly of non-residential heating fuel sales and fuel purchased for use by the company. Because most of the fuel purchased by direct pay permit holders is tax-exempt, they avoid paying taxes when they purchase the fuel and file for a refund after selling the fuel. The system also reduces the administrative cost to the division which avoids processing refunds for exempt fuel sales. The PPGR tax is more burdensome on gasoline and diesel fuel distributors and retailers than the Motor Fuels Tax because the tax is embedded in the fuel price as the fuel moves down the supply chain so that distributors and retailers are unable to delay payment until they receive payment for their sales. Instead, the distributors and retailers, to the extent that they are required to pay for motor fuels upon delivery, must carry the cost of the tax payment until they receive payment for the motor fuel they sell. In addition to residential heating fuels, the following products are exempt from the PPGR tax: 1) Marine fuels used for interstate and foreign commerce; 2) Aviation fuels used for interstate and foreign commerce; 3) Asphalt; 4) Propylene used to make polypropylene (plastics); 5) Purchases by nonprofit entities exempt from the sales tax; 6) Purchases by the State and federal government; and 7) Fuel used by co-generation facilities to generate electricity. Petroleum Products Gross Receipts Tax Revenues The Constitution dedicates PPGR tax revenue for State transportation system costs in an amount not less than $200 million per year. In FY 2015, the PPGR tax generated $215.1 million in State revenue, all of which was appropriated to the TTFA. The factors impacting PPGR tax revenue trends are in part similar to those affecting Motor Fuels Tax collections, with population and real estate development growth leading to higher revenue. Yet, while the historical revenue patterns are correlated, the PPGR tax tends to be impacted to a larger degree by economic growth. This is due to the PPGR tax being a broader tax that applies to more products. Many of those products are consumer goods or inputs into consumer goods that are impacted by cyclical swings in the economy. PPGR tax revenue has fluctuated since FY 2000 without a strong trend. Collections ranged from $206.5 million to $248.5 million, with most years posting totals between $210.0 million and $225.0 million. The Executive projects $218.1 million in each of FY 2016 and FY 2017.



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PPGR tax revenues since FY 2000 are as follows: Table 3

Rates and Distribution of Petroleum Products Gross Receipts Taxes $ in Millions

Dedication of Tax Revenue Total Tax To Transportation Trust Fund Revenue

Year PPGR Rate* Constitutional Statutory 2000 4.0/2.75% $100.0 $100.0 $208.9 2001 4.0/2.75% 200.0 200.0 215.8 2002 4.0/2.75% 200.0 200.0 219.7 2003 4.0/2.75% 200.0 200.0 214.4 2004 4.0/2.75% 200.0 200.0 216.2 2005 4.0/2.75% 200.0 200.0 248.5 2006 4.0/2.75% 200.0 200.0 224.8 2007 4.0/2.75% 200.0 200.0 232.4 2008 4.0/2.75% 200.0 200.0 230.7 2009 4.0/2.75% 200.0 200.0 222.5 2010 4.0/2.75% 200.0 200.0 216.3 2011 4.0/2.75% 200.0 200.0 216.4 2012 4.0/2.75% 200.0 222.5 223.3 2013 4.0/2.75% 200.0 206.5 206.5 2014 4.0/2.75% 200.0 216.8 216.8 2015 4.0/2.75% 200.0 215.1 215.1 2016est. 4.0/2.75% 200.0 218.1 218.1 2017est. 4.0/2.75% 200.0 218.1 218.1 *Rate in cents/gallon. Minimum constitutional dedication 2012-present is $200 million. Source: Transportation Trust Fund Authority and FY 2017 GBM.

Table 4

$200

$210

$220

$230

$240

$250

$260

Petroleum Products Gross Receipts Tax RevenueBy Fiscal Year, $ in Millions



22

Federal Gas Tax The federal Motor Fuels Tax is imposed on the retail sale of various types of motor fuels on a cents-per-gallon basis. Other than a 0.1 cent per gallon amount dedicated to the Leaking Underground Storage Tank Trust Fund, federal Motor Fuels Tax revenues are dedicated to the Federal Highway Trust Fund, and then largely distributed to States as formula-based federal aid for State transportation projects. The federal Motor Fuels Tax on gasoline and diesel fuel is 18.4 and 24.4 cents per gallon respectively and was last increased in 1993. New Jersey is among the states that receive the fewest federal dollars relative to the amount of revenue contributed to the Federal Highway Trust Fund from gasoline and diesel fuel sales occurring in the State. In 2011, the federal Government Accountability Office issued a report on the rate of return realized by states from 2005-2009 on federal Motor Fuels Tax revenue generated. New Jersey tied 11 other states for the lowest amount of relative funding, receiving back 91.3 percent of the federal dollars generated in the State. Federal Motor Fuels Tax revenues are important to the states because the federal government redistributes the revenues back to the states as grant money. Most federal Motor Fuels Tax revenue collected in New Jersey is given back to New Jersey for many of the same purposes as the State Motor Fuels Tax. But, the State does not have the same flexibility in using federal dollars as it does in using State Motor Fuels Tax revenue. Federal regulations and restrictions on federal grants are widely considered to increase the cost of State transportation projects. Because of the close connection between the State and federal taxes, but differences in flexibility when appropriating the revenues, the existence of a federal Motor Fuels Tax limits the ability of states to impose that tax themselves and use the revenue more directly for their own purposes. Table 5

Federal Rates and Distribution of Motor Fuel Taxes, 2016 Distribution of Tax Revenue

(rate in cents/gallon) Highway Trust Fund Leaking Underground Storage Tank Trust Fund Fuel Type

Effective Date Tax Rate

Highway Account

Mass Transit Account

Gasoline and Gasohol 10/1/97 18.4 15.44 2.86 0.1 Diesel and Kerosene 10/1/97 24.4 21.44 2.86 0.1 Alternative Fuels: Liq. Petrol Gas 10/1/06 18.3 16.17 2.13 - Liq. Nat. Gas 10/1/06 24.3 22.44 1.86 - Comp. Nat. Gas 10/1/06 18.3 17.07 1.23 - Other Special Fuels 10/1/97 18.4 15.44 2.86 0.1 Source: Federal Highway Administration

OFFICE OF LEGISLATIVE SERVICES

The Office of Legislative Services provides nonpartisan assistanceto the State Legislature in the areas of legal, fiscal, research, bill

drafting, committee staffing and administrative services. It operatesunder the jurisdiction of the Legislative Services Commission, a biparti-san body consisting of eight members of each House. The ExecutiveDirector supervises and directs the Office of Legislative Services.

The Legislative Budget and Finance Officer is the chief fiscal officer forthe Legislature. The Legislative Budget and Finance Officer collects andpresents fiscal information for the Legislature; serves as Secretary to theJoint Budget Oversight Committee; attends upon the AppropriationsCommittees during review of the Governor's Budget recommendations;reports on such matters as the committees or Legislature may direct;administers the fiscal note process and has statutory responsibilities forthe review of appropriations transfers and other State fiscal transactions.

The Office of Legislative Services Central Staff provides a variety oflegal, fiscal, research and administrative services to individual legisla-tors, legislative officers, legislative committees and commissions, andpartisan staff. The central staff is organized under the Central StaffManagement Unit into ten subject area sections. Each section, under asection chief, includes legal, fiscal, and research staff for the standingreference committees of the Legislature and, upon request, to specialcommissions created by the Legislature. The central staff assists theLegislative Budget and Finance Officer in providing services to theAppropriations Committees during the budget review process.

Individuals wishing information and committee schedules on the FY2017 budget are encouraged to contact:

Legislative Budget and Finance OfficeState House Annex

Room 140 PO Box 068Trenton, NJ 08625

(609) 847-3105 • Fax (609) 777-2442

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