State of New Jersey Fiscal Year 2002 Appropriations Act STATE OF - PDF document

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS State of New Jersey Fiscal Year 2002 Appropriations Act

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Economic Growth Stays Strong (1990 - 2002) NEW JERSEY EMPLOYMENT GROWTH OF INCOME OVER $100,000 1990 - 2002 1994 – 2002 In Millions $ In Billions 4.2 175.0 150.0 4.0 125.0 3.8 100.0 3.6 75.0 3.4 50.0 3.2 25.0 3.0 0.0 90 91 92 93 94 95 96 97 98 99 00 01 02 94 95 96 97 98 99 00 01 02 Calendar Year Calendar Year NEW JERSEY GROSS STATE PRODUCT NEW VEHICLE REGISTRATIONS 1990 - 2002 1990 - 2002 In Billions In Thousands $400 650 600 $350 550 $300 500 450 $250 400 $200 350 300 $150 90 91 92 93 94 95 96 97 98 99 00 01 02 90 91 92 93 94 95 96 97 98 99 00 01 02 Calendar Year Calendar Year

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS The Fiscal 2002 Appropriations Act Proposed Spending is Reduced by $232 Million & a Record Surplus is Provided % (In Millions) Change FY 2001 FY 2002 to Adjusted Budget FY 2002 Adjusted Approp. Message Approp. Bill Approp. Opening Surplus $ 1,285 $ 1,279 $ 1,068 (16.9)% Revenues Income 7,970 8,916 8,545 7.2% Sales 5,779 6,247 6,137 6.2% Corporate 1,335 1,513 1,823 36.6% Other 5,877 6,198 6,367 8.3% Total Revenues $ 20,961 $ 22,874 $ 22,872 9.1% Lapses 619 --- --- Total Resources $ 22,865 $ 24,153 $ 23,940 4.7% Appropriations Original $ 21,431 $ 23,153 $ 22,921 7.0% Supplemental 366 --- --- Total Appropriations $ 21,797 $ 23,153 $ 22,921 5.2% Fund Balance $ 1,068 $ 1,000 $ 1,019

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Acting Governor Donald T. DiFrancesco’s Priorities Promises Made, Promises Kept (In Millions) FY 2002 Approp. Bill Property Tax Relief Increase Homestead Rebate to $750 $ 118.0 Increase Tenants' Rebate to $100 $ 26.0 Accelerate NJSaver to Average of $500 $ 150.0 Subtotal $ 294.0 Health Care Senior Gold $ 50.0 Increase Medicaid Hospital Rates + Charity Care $ 55.0 Expand Family Care $ 25.1 Medicaid Physician Fee Increase $ 35.0 Spousal Impoverishment $ 24.4 ER Physician Payments $ 5.0 Newborn Screening $ 3.1 Managed Care Oversight + Consumer Awareness $ 1.4 Expansion of Minority Health Services $ 1.5 Subtotal $ 200.5 Kidsneeds $ 13.0 DYFS Staffing $ 12.0 Protecting New Jersey's Drinking Water $ 21.0 Education - School Aid Hold Harmless $ 11.4 Total $ 551.9

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Direct Property Tax Relief Grows by 42.7% (In Millions) FY 2001 Adjusted FY 2002 Approp. Approp. Bill $ Change % Change NJ Saver $ 336.7 $ 607.4 $ 270.7 80.4% Homestead Rebates 335.1 482.6 147.5 44.0% Veterans & Senior/Disabled Citizens Property Tax Deduction 77.3 92.0 14.7 19.0% Property Tax Deduction Act 301.0 316.0 15.0 5.0% Total Direct Property Tax Relief $ 1,050.1 $ 1,498.0 $ 447.9 42.7%

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Record Funding for Property Tax Relief (In Millions) FY 2001 FY2002 Adjusted Budget FY 2002 Change Programs Approp. Message Approp. Bill $ % School Aid $ 6,837.1 $ 7,451.3 $ 7,441.1 $ 604.0 8.8% Municipal Aid 1,667.7 1,741.8 1,723.5 55.8 3.3% Other Local Aid 593.7 593.3 622.6 28.9 4.9% Direct Property Tax Relief 1,050.1 1,358.5 1,498.0 447.9 42.7% Subtotal Direct Aid $10,148.6 $11,144.9 $ 11,285.2 $1,136.6 11.2% Police and Firemens' Retirement Local Savings 150.0 247.8 247.8 97.8 65.2% Pension Security Program Savings 48.7 48.7 48.7 --- ---- Grand Totals $10,347.3 $11,441.4 $ 11,581.7 $1,234.4 11.9%

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS State Aid & Services are Increased by $1,351 Million FY 2001 FY 2002 Change Adjusted Budget FY 2002 Approp. Message Approp. Bill $ % State-Aid $ 8,492 $ 9,151 $ 9,148 $ 656 7.7% Grants-in-Aid 6,769 7,396 7,464 695 10.3% Operations 4,821 4,900 4,751 (70) (1.5)% Capital 1,185 1,177 1,064 (121) (10.2)% Debt Service 530 529 494 (36) (6.8)% Grand Total -- State $ 21,797 $ 23,153 $ 22,921 $ 1,124 5.2%

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Record School Aid Meets Local Needs (In Millions) FY 2001 FY 2002 Change Adjusted Budget FY 2002 from Approp. Message Approp. Bill FY 2001 CEIFA/Supplemental Programs $ 5,735.8 $ 6,193.0 $ 6,191.6 $ 455.8 Other Aid 178.9 172.3 161.8 (17.1) Total Direct School Aid $ 5,914.7 $ 6,365.3 $ 6,353.4 $ 438.7 Post Retirement Medical, Debt Service and Social Security 792.5 904.0 905.7 113.2 School Construction and Renovation 129.9 182.0 182.0 52.1 Total School Aid $ 6,837.1 $ 7,451.3 $ 7,441.1 $ 604.0 Local Pension Security Program Savings 10.6 10.6 10.6 - Total School Aid and Related Items $ 6,847.7 $ 7,461.9 $ 7,451.7 $ 604.0

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Municipal Aid is Increased (In Millions) FY 2001 Adjusted FY 2002 Approp. Approp. Bill $ Change Consolidated Municipal Property Tax Relief Aid (CMPTRA) $ 787.8 $ 818.5 $ 30.7 Energy Receipts Property Tax Relief Aid 750.0 755.0 5.0 Special Municipal Aid - 38.7 38.7 Regional Efficiency Aid Program 16.8 20.0 3.2 Regional Efficiency Dev. Incentive Program 10.0 5.0 (5.0) Legislative Initiative Block Grant Program 33.8 33.8 - Extraordinary Aid 25.0 25.0 - Watershed Moratorium Offset Aid 3.3 3.4 0.1 Open Space - Payment In Lieu of Taxes (PILOT) 7.1 7.4 0.3 Business Personal Property Tax Depreciation 33.9 16.7 (17.2) Subtotal Direct Municipal Aid $ 1,667.7 $ 1,723.5 $ 55.8 Local Pension Security Program Savings 12.8 12.8 --- Total Municipal Aid and Budget Savings $ 1,680.5 $ 1,736.3 $ 55.8

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Higher Education Commitment Grows by Over $108 Million (In Millions) FY 2001 Adjusted FY 2002 Approp. Approp. Bill $ Change COLLEGES AND UNIVERSITIES Senior Public Colleges and Universities $ 1,157.2 $ 1,239.2 $ 82.0 County Colleges 191.1 203.8 12.7 Independent Colleges and Universities 26.2 24.5 (1.7) STUDENT FINANCIAL ASSISTANCE 216.6 222.9 6.3 HIGH-TECH INITIATIVES Excellence in High Technology Workforce 15.0 15.0 - Biomedical and Other Technology Research 10.0 5.0 (5.0) Bioengineering and Genetics Building - 2.0 2.0 TEACHER QUALITY Teacher Preparation - 10.0 10.0 OTHER PROGRAMS 92.8 95.0 2.2 Grand Total $ 1,708.9 $ 1,817.4 $ 108.5

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Tax Reform & Economic Growth Provides $1.9 Billion in New Revenues (In Millions) FY 2001 FY 2002 FY 2002 Adjusted Budget Approp. Message Revenues Bill Sales $ 5,779 $ 6,247 $ 6,137 Corporate 1,335 1,513 1,823 Income 7,970 8,916 8,545 Other 5,877 6,198 6,368 Total $ 20,961 $ 22,874 $ 22,873

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS The Structural Deficit Declines (In Millions ) $1,800 1,586 $1,600 $1,400 $1,200 $1,000 875 $800 694 620 556 $600 437 352 $400 306 157 $200 $0 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 The structural deficit is the total of one-shot revenues and one-shot spending reductions plus the drawdown of prior year balances. Based upon projections at enactment of Appropriations Act for that fiscal year.

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Total Fund Balance at Record High (In Millions) $1,200 $1,100 1,019 $1,000 870 $900 299 783 $800 172 700 $700 175 199 $600 550 550 550 $500 450 411 222 287 $400 304 720 698 608 296 $300 255 501 $200 328 263 246 $100 156 154 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 Rainy Day Fund Fund Balance Fund Balances projected at Appropriation Act.

STATE OF NEW JERSEY FY 2002 APPROPRIATIONS Surplus at Record High As a Percentage of the Budget 5.0% $1,050 $1,000 4.5% $950 4.0% $900 $850 3.5% $800 3.0% $750 $700 2.5% 1019 $650 2.0% $600 870 $550 782 1.5% 700 $500 1.0% $450 550 550 $400 500 0.5% 450 411 $350 0.0% $300 1994 1995 1996 1997 1998 1999 2000 2001 2002 Surplus %of Approp. Fund Balances projected at Appropriations Act.