Trenton – The Senate Economic Growth Committee today advanced legislation sponsored by Senator Troy Singleton that would require stress testing on the State’s ability to provide services in various economic conditions.
The bill, S-2539, would require the Department of Treasury to conduct an annual stress test analysis and compile a report on the State’s ability to maintain services and assist residents in varying 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.”
Currently, Minnesota, Utah, Montana and Nebraska have laws that require regular State budget stress tests.
The committee passed the bill by a vote of 5-0.