TRENTON, N.J. (6/29/10)--The New Jersey Credit Union League is monitoring negotiations between the governor's office and the state Legislature on final details of the state's Fiscal Year 2011 budget. There are two budget-related areas of concern to credit unions, the league said in its newsletter, The Daily Exchange
* A potential payroll tax increase to replenish the state's insolvent Unemployment Insurance Fund that would average $400 per employee; and * Abandon property and dormancy fee changes to payment instruments such as travelers checks (three years), money orders (three years) and gift cards (one or two years). Abandon property proposals would prohibit dormancy fees on gift cards during the first year and limit them to $2 per month for travelers checks and money orders. The changes would become effective immediately.
July 1 is the deadline set by the state's constitution for final passage of the budget to avoid a state government "shut-down" similar to one in 2006. No one expects a shut down, but lawmakers are still making last minute efforts on pet projects, said the league.