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Bill

SCR 128

Amends State Constitution to prohibit State appropriations to non-State agencies unless based upon competitive criteria or statutory process.

2026-2027 Regular Session

Constitutional amendment requiring New Jersey state appropriations to non-state agencies be awarded through competitive criteria or statutory procedures rather than discretionary allocation.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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Bill Summary · SCR 128

Legislative bill overview

SCR 128 proposes a constitutional amendment requiring that any state appropriations to non-state agencies (such as nonprofits, private organizations, or local entities) must be awarded either through competitive bidding processes or pursuant to existing statutory procedures. This prevents the state from making discretionary grants or funding allocations to outside organizations without established, transparent criteria.

Why is this important

State governments distribute billions in appropriations annually to external organizations for services ranging from social programs to infrastructure. This amendment would mandate transparency and competitive fairness in those distributions, potentially reducing favoritism or political allocations while ensuring taxpayer funds are directed through defined processes rather than arbitrary decisions.

Potential points of contention

  • Reduced flexibility: State agencies may argue that competitive processes are time-consuming and bureaucratic, limiting their ability to quickly fund urgent community needs or emerging crises
  • Statutory burden: The amendment's reliance on "statutory process" could shift power from the executive branch to the legislature, requiring new laws for each funding category
  • Definition disputes: Questions about what constitutes a "non-state agency" and whether this applies to universities, public authorities, or other quasi-governmental entities could create litigation
  • Small organization impact: Nonprofits and smaller entities may face higher compliance costs to compete in formal bidding processes, potentially disadvantaging local community organizations

Compiled from official sources — confirm details with the bill’s official record.

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