I. Reissue of CY 2022/SFY 2023 State Aid Certification
The Division of Local Government Services has issued Local Finance Notice 2021-13, regarding the reissue of the state aid payment, including Municipal Relief Funds, and payment schedule dates. As part of the state’s budget package, in addition to Energy Tax Receipts and Consolidated Municipal Property Tax Relief (CMPTRA), $75 million in Municipal Relief Funds was included as the first step towards full Energy Tax Receipts restoration. According to the Local Finance Notice if the municipality has already adopted their CY 2022 budget they must establish a reserve for the revenue received and not anticipated in the CY 2022 budget. The revenue should be anticipated in the CY 2023 budget. If a municipality has not yet adopted their CY 2022 budget the funds must be considered anticipated revenue by amendment before adoption of the CY 2022 budget.
The State’s adopted FY 2023 budget keeps funding for Energy Tax Receipts, CMPTRA, and Watershed Moratorium Offset flat. The appropriation for the Garden State Trust Aid was reduced to the FY 2021 level of $6.483 million. The FY 2022 increase of 54.1% was not included in the FY 2023 state budget.
The aid breakdown and amounts for each municipality will be available on the Division’s website under Information Resources/Municipal State Aid heading by end of business today.
We suggest you review this Local Finance Notice with your Chief Financial Officer.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, email@example.com, 609-695-3481, x112.