Trenton – The Senate today advanced legislation sponsored by Senator Troy Singleton and Senator Shirley K. Turner that would require stress testing on the State’s ability to provide services in various economic conditions.
“Implementing preventative measures, such as stress testing, will allow for our state government to be better protected in the wake of a recession,” said Senator Singleton (D-Burlington). “Budget stress tests help states estimate the potential financial shortfalls that could result from sudden emergencies, like the COVID-19 pandemic, for example. Proactive solutions will help to minimize future disasters.”
The bill, S-2539, would require the Department of Treasury to conduct a stress test analysis once every three years and compile a report on the State’s ability to maintain services and assist residents in varying economic conditions.
“The creation of a state budget should take into account the state’s competency in various economic conditions. A critical lesson we must learn after facing this pandemic is to implement cautionary measures for unprecedented and unpredictable circumstances,” said Shirley K. Turner (Hunterdon/Mercer). “This legislation will provide that the economic condition of the State remains well-prepared for any unforeseen crises or economic downturns."
Currently, Minnesota, Utah, Montana and Nebraska have laws that require regular State budget stress tests.
The Senate passed the bill by a vote of 37-0.