LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 4092
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 12, 2023
SUMMARY
Synopsis: Allows certain airports to carry over certain grant money into future
years.
Type of Impact: Annual State revenue loss
Agencies Affected: Department of Transportation.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Revenue Decrease $122,000-$340,000
 The Office of Legislative Services (OLS) estimates that the Department of Transportation may
experience an annual revenue loss by allowing certain airports to carry forward unused grant
monies instead of requiring those monies to be returned to the department as rescinded funds.
 Under the bill, the department will determine whether an airport my carry forward certain
unexpended funds. However, if rescinded, these funds would become available to the
department for any departmental purpose. As a practical matter, these funds would likely be
reallocated to airports through the department’s Airport Improvement Program (AIP) in a
subsequent fiscal year.
 At current funding levels, the projected annual impact of this legislation is approximately
$122,000 to $340,000. If funding for the AIP is increased over time, the projected annual State
revenue loss would rise as the total amount of funds allocated to the AIP increases.
BILL DESCRIPTION
This bill would allow airports that have received grant money from the Airport Safety Fund or
the department’s AIP to carry over that grant money into future fiscal years without the funds
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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being rescinded by the department. Under the bill, the department would have the sole discretion
to determine whether the unexpended funds may be carried forward.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill would reduce annual State revenues by allowing certain airports to
carry forward unspent grant monies instead of requiring these monies to be rescinded by the
department. Consequently, the bill would cause fewer unspent grants to revert to the department.
In 2021 and 2022, the department, through the AIP, awarded $6.1 million and $8.5 million,
respectively, in grants to airports to support airport safety and improvement projects. Given the
total size of the grant money awarded, these figures would roughly represent the maximum amount
of funds that could be annually rescinded by the department. The annual impact of the bill would
be significantly less than these amounts, however, since the annual fiscal impact would be limited
to the amount of funds actually subject to rescission in a given year.
The OLS does not have information on the amount of AIP funds that are subject to rescission
each year. For FY 2020, the department indicated to the OLS that $5.7 million of local aid funding
for transportation projects was rescinded across all departmental programs. This amount
represents roughly 2.8 percent of the $200 million local aid program for FY 2017, which may have
been subject to rescission in FY 2020. Assuming that AIP grants have a similar percentage of
funds subject to rescission as the department’s local aid program and assuming that the department
permits all eligible monies to be carried forward, the OLS estimates that between two and four
percent of AIP funds may be subject to rescission in a given year for an annual range of $122,000
to $340,000 based on the most recent AIP grant amounts.
Notably, the New Jersey State Airport System Plan recommends annual funding of $23 million
to fund the State’s airport system. If this targeted funding amount is reached, the projected impact
of the legislation would ultimately grow as funding for the AIP grows.
Section: Authorities, Utilities, Transportation and Communications.
Analyst: Michael D. Walker
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.).