WeVote
Log In

Bill

Bill

ACR 28

Proposes constitutional amendment to establish revenue responsibility through annual State appropriations cap limiting spending growth to one percent per year over six years and a permanent revenue responsibility fund reserved for reducing State pension benefit liabilities.

2026-2027 Regular Session Introduced by Bob Auth

Constitutional amendment capping NJ state spending growth at 1% annually for six years while dedicating surpluses to reducing unfunded pension liabilities.

Introduced, Referred to Assembly State and Local Government Committee
0
WeVote Research Nonpartisan
Bill Summary · ACR 28

Legislative bill overview

ACR 28 proposes a constitutional amendment that would cap New Jersey's annual state spending growth at 1% per year for six years and establish a permanent "revenue responsibility fund" dedicated to reducing state pension liabilities. This would fundamentally constrain the state budget's flexibility and redirect any spending surpluses toward addressing unfunded pension obligations.

Why is this important

New Jersey faces significant unfunded pension liabilities (estimated in tens of billions of dollars), which represent a major long-term fiscal challenge. A spending cap would dramatically reshape how the state allocates resources across education, healthcare, infrastructure, and social services. The proposal directly addresses pension debt but creates competing pressures on other budget priorities during economic growth or emergencies.

Potential points of contention

  • Inflexibility during crises: A 1% annual cap could prevent adequate state response to recessions, public health emergencies, or natural disasters when revenues decline or urgent needs spike
  • Education and services impact: New Jersey's largest budget items (K-12 education, higher education, Medicaid) would face severe constraints, potentially requiring significant service reductions or property tax increases
  • Pension reform vs. spending cuts: Critics may argue the amendment treats pension debt as more urgent than current services, while supporters see it as necessary fiscal discipline to prevent future crises
  • Constitutional lock-in: Amending the constitution makes future adjustments extremely difficult, potentially creating problems unforeseen at the time of passage

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

Sign in to ask a question.