LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 2014
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 23, 2023
SUMMARY
Synopsis: “Manufacturing in Higher Education Act”; requires various State
entities to promote manufacturing career pathways for students and
provides assistance to manufacturing industry.
Type of Impact: Annual expenditure increases to the General Fund; annual revenue
increases for county colleges, four-year institutions of higher
education, proprietary institutions, and county vocational schools.
Agencies Affected: Office of the Secretary of Higher Education; Department of Labor and
Workforce Development; Department of State; New Jersey Economic
Development Authority; New Jersey State Employment and Training
Commission; County Colleges; Four-Year Institutions of Higher
Education; Proprietary Institutions; County Vocational School
Districts.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Years 2 and 3
State Cost Increase $10.4 million At least $10.1 million
County Colleges Revenue Increase $5 million $5 million
Four-Year Institutions of Higher
Education Revenue Increase $1.25 million $1.25 million
Proprietary Institutions Revenue Increase $1.25 million $1.25 million
County Vocational School Districts
Revenue Increase $2.5 million $2.5 million
The Office of Legislative Services (OLS) determines that this bill will increase annual State
expenditures across several State agencies in order to implement the various requirements of
the bill that aim to promote manufacturing-oriented education and the manufacturing industry
at-large. In total, the OLS estimates State costs of approximately $10.4 million in the first year
of implementation. State costs thereafter would be at least $10.1 million due to the bill’s
establishment of the Higher Education Manufacturing Grant Program and the bill’s
requirement to designate a liaison between the State and manufacturing businesses.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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The bill requires that $10 million be annually awarded under the Higher Education
Manufacturing Grant Program to county colleges, four-year institutions of higher education,
proprietary institutions, and county vocational school districts for the purposes of establishing
or expanding programs in the manufacturing fields and for marketing and promoting current
programs.
The State may also incur annual cost increases in the event that the Business Action Center
within the Department of State hires a new employee to be a liaison between the State and
manufacturing businesses located in the State. Employing certain assumptions, the OLS
estimates that the approximate annual cost of providing for the salary and benefits of the liaison
would be $125,500.
Several other measures in the bill aimed at the promotion of manufacturing in the State could
result in indeterminate State expenditure increases, the magnitude of which would be
dependent on resource allocation and implementation decisions of various agencies.
BILL DESCRIPTION
This bill requires various State entities to promote manufacturing career pathways for students
and provides assistance to the manufacturing industry. The provisions of the bill include:
requiring the Department of Labor and Workforce Development to promote and support
the implementation of the manufacturing career pathway offered through the New Jersey
Pathways to Career Opportunities Initiative operated by the New Jersey Community
College Consortium for Workforce Development;
creating the Higher Education Manufacturing Grant Program, under which $10 million
would be awarded to four-year institutions of higher education, proprietary institutions,
and county vocational school districts for the purpose of establishing or expanding
programs in the manufacturing fields, and marketing and promoting current programs in
the manufacturing fields;
requiring the Department of State to designate an existing or newly hired employee of the
Business Action Center to act as a liaison between the State and manufacturing businesses;
requiring the Department of State to work with State departments, agencies, boards,
commissions, and authorities to direct resources, create incentives, and provide
technological, financial, and workforce development opportunities for manufacturing
businesses; and
establishing the New Jersey Advanced Manufacturing Council in the New Jersey State
Employment and Training Commission.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
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OFFICE OF LEGISLATIVE SERVICES
The OLS determines that this bill will increase annual State expenditures across several State
agencies in order to implement the various requirements of the bill that aim to promote
manufacturing-oriented education and the manufacturing industry at-large. In total, the OLS
estimates State costs of up to approximately $10.4 million in the first year of implementation.
State costs thereafter would be at least $10.1 million due to the bill’s establishment of the Higher
Education Manufacturing Grant Program and the bill’s requirement to designate a liaison between
the State and manufacturing businesses.
Higher Education Manufacturing Grant Program
The OLS finds that annual expenditures for the Higher Education Manufacturing Grant
Program would be $10 million, as specified in the bill.
The $10 million in expenditures required under the bill would result in a total annual revenue
increase of $5 million to the county colleges, which are required to receive 50 percent of program
funding. County vocational school districts would receive $2.5 million, as they are required to
receive 25 percent of program funding. Finally, the bill requires that the remaining 25 percent, or
$2.5 million, of funding be awarded to four-year institutions of higher education and proprietary
institutions. While the bill does not specify the distribution of funds to the four-year institutions
of higher education and proprietary institutions, the OLS assumes that the two groups of
institutions will each receive one half of the amount, or $1.25 million.
Manufacturing Liaison
The bill requires the Department of State, in consultation with the Department of Labor and
Workforce Development, to designate an existing or newly hired employee of the Business Action
Center in the Department of State to act as a liaison between the State and manufacturing
businesses located in the State. The State may incur annual cost increases in the event that the
Business Action Center hires a new employee to be a liaison between the State and manufacturing
businesses located in the State, rather than designating an existing employee. Assuming that a
newly hired employee would receive an annual salary of $78,000 for this role, then annual costs
would approximate $125,500 when factoring in the State’s current fringe benefit rate.
Other Potential State Costs
The State may experience other cost increases to administer and implement various other
provisions of the bill. Three provisions in particular may present costs to the State.
First, the bill requires the Department of Labor and Workforce Development, in consultation
with the Department of Education, the Office of the Secretary of Higher Education, the New Jersey
Council of County Colleges, and representatives of the business community, to promote and
support the implementation of the manufacturing career pathway offered through the New Jersey
Pathways to Career Opportunities Initiative operated by the New Jersey Community College
Consortium for Workforce Development. The OLS surmises that, based on appropriations made
for various State public awareness campaigns, one-time costs of promoting the career pathway
may cost up to $100,000 in the first year of implementation. Meanwhile, the OLS assumes, based
on experiences in another state, that additional staff costs to support the implementation of the
career pathway may require first-year costs of approximately $150,000. Recurring costs stemming
from this requirement are indeterminate as the level of resources that the Department of Labor and
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Workforce Development would annually dedicate towards the promotion and support of the
manufacturing career pathway is uncertain.
The bill requires the creation of the New Jersey Advanced Manufacturing Council within the
New Jersey State Employment and Training Commission. Under the bill, the council would lead
various initiatives aimed at promoting the advanced manufacturing industry, including convening
and enabling private-public partnerships between institutions of higher education and businesses,
implementing an advanced manufacturing initiative to facilitate collaboration across the State, and
assisting private companies in scaling up production of new technologies. The bill enables the
council to employ staff. Uncertain of the potential level of staffing needed to fulfill the council’s
duties under the bill, the OLS finds this provision of the bill to be indeterminate. However,
assuming that the council employs five people at an average salary of $78,000, then annual salary
and fringe benefit costs would total $627,500.
Under the bill, the Department of State is required to work with State departments, agencies,
boards, commissions, and authorities to direct resources, create incentives, and provide
technological, financial, and workforce development opportunities for manufacturing businesses.
This requirement of the bill may result in annual State expenditure increases; however, costs
associated with this provision are indeterminate as the nature of the resources, incentives, and
opportunities that may be developed would likely be subject to implementation decisions made by
the Department of State.
Section: Education
Analyst: Abigail Chambers
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).