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Budgeting

Posted on: December 21, 2023

Division Issues Guidance on CY 2024 Budget

The Division of Local Government Services has issued Local Finance Notice 2023-22 providing updates on the 2024 calendar year budget process for counties and municipalities, including deadline extensions, COVID special emergencies, and capital budgets for municipal water systems. 

The statutory budget deadlines for CY 2024 have been revised as follows: 

  • Mayor/Council Faulkner Act budget transmission to governing body from January 17 to February 27, or the next regularly scheduled governing body meeting. 
  • Submission of Annual Financial Statement (AFS) from February 10 to March 8.
  • Municipal introduction and approval of budget from February 10 to March 29, or the next regularly scheduled governing body meeting.
  • Municipal adoption of the budget from March 20 to April 30, or the next regularly scheduled governing body meeting. 

Regardless of the revised budget dates, a budget may be adopted anytime within 10 days of receiving the Director’s certification of budget approval. 

CY2024 will be the third installment to budget for deferred charges for the COVID Special Emergencies passed in 2020 and 2021. The deferred charges can be excluded from the appropriations and levy caps.  

Cap exemptions for health insurance are based on the average of the State Health Benefits increase of 7.4% for CY24. The appropriation cap exclusion is 3.4% and the levy cap exclusion is 5.4%.  

The Division is advising for budget purposes 2023 aid amounts, excluding the Municipal Relief Fund, may be used in the introduction of the CY24 budget. After the FY25 state budget is proposed the Division will notify municipalities the amount of Energy Tax Receipts that can be anticipated in the CY24 budget.  

Beginning in CY24 municipalities with municipal water systems are required to have an annual capital budget and program and incorporated into their Water Quality Accountability annual report. The Division advises that the Chief Financial Officer should work with the municipal official responsible for submitting the annual report to DEP.  

We suggest you review this Local Finance Notice with your Chief Financial Officer.  

Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.

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