New Jersey State Auditor David J. Kaschak has released the state's first summary of its Annual Comprehensive Financial Report (ACFR). This development follows legislation drafted by the New Jersey Society of CPAs (NJCPA) and New Jersey Business & Industry Association (NJBIA), aimed at enhancing transparency regarding the state's financial health.
The fiscal transparency bill, identified as S-1884/A-4090, was enacted in 2023 under Governor Murphy's Administration. It mandates that the State Auditor provides an annual summary of the extensive ACFR to make it more accessible for lawmakers, media, and the public.
This new 40-page summary includes government-wide financial data, comparisons with other states, anticipated revenue versus original appropriations, and economic and demographic data. Additionally, it offers accounting definitions and covers information from ACFRs spanning fiscal years 2020 through 2024.
Furthermore, the law stipulates that the state auditor must present testimony about the ACFR before Senate and Assembly budget committees. The comprehensive ACFR contains significant items not addressed in the annual budget such as unfunded liabilities, debt and spending details, and financial information on independent state authorities. The document uses technical accounting language without statistical comparisons to other states.
Aiysha (AJ) Johnson, CEO and executive director of NJCPA stated: "Having a more transparent picture of the state’s finances is crucial for business leaders, taxpayers and lawmakers so they will all be able to make informed decisions. Keeping New Jerseyans abreast of key tax and revenue issues enables the state to remain a desirable place to live and do business."
The summary revealed several financial statistics for New Jersey:
- Fiscal year 2024 ended with a negative net position of $158.7 billion for the primary government.
- Total revenues amounted to $95.6 billion against total expenses of $86.6 billion.
- As of June 30, 2024, long-term obligations stood at $201 billion.
- New Jersey has significant net pension liability compared to regional states.
- The total fund balance was $33.1 billion at fiscal year-end 2024.
- The budget totaled $67.8 billion through various appropriations.
- Population increased to 9.5 million in 2024.
- Unemployment rates occasionally exceeded national averages.
