The Division of Local Government Services (DLGS) has issued Local Finance Notice 2025-05 regarding the CY2025/SFY2026 State Aid Certification.
Governor Murphy proposed his SFY2026 State Budget on February 25 with flat funding for Energy Tax Receipts (ETR), Garden State Trust Aid, and Watershed Moratorium Offset Aid. No municipality should expect to receive less in formula aid than last budget year. Please note that the proposed SFY2026 budget does not include any funding for Municipal Relief Aid.
Certifications may be found on the DLGS website on the Municipal State Aid webpage. Municipalities may also generate their individual schedules in Excel format.
The certifications will document the aid allocations for each municipality and are used in preparing the revenue section of CY2025 budgets. Although the proposed budget serves as a guide to SFY municipalities, final SFY certifications will be posted once the state budget is adopted. Aid certifications also reflect last year and current year’s ETR allocation.
Aid payment schedules will be released in July, prior to the August 1 payment. Typically, payments are made through the Automated Clearing House (ACH) payment system. Please make sure that if you have any changes to your municipal depository, you notify DLGS and fill out any required forms from the State Office of Management and Budget.
DLGS will consider budgets introduced on the first regularly scheduled governing body meeting after March 31 on time. However, applicants for Transitional Aid must introduce their budgets by the Transitional Aid application deadline.
The League will provide updates on the budget process as appropriate.
Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, x116.