New Jersey Assembly Bill A4734

New Jersey 2022-2023 Regular Session

• Introduced: 10/11/22
• Refer: 10/11/22

Caption

Excludes contributions to volunteer first aid or rescue squads from appropriations cap and property tax levy cap for certain local units.

Impact

The introduction of A4734 is intended to enhance the funding flexibility of municipalities, particularly for volunteer emergency services that are essential for public safety. As it stands, New Jersey law imposes strict limits on how much local governments can increase their budgets, capping increases typically at 2.5% or based on the cost-of-living adjustments. By excluding volunteer contributions from these caps, local units can ensure that these organizations receive the necessary financial support without adversely affecting their overall budgetary framework.

Summary

Assembly Bill A4734 seeks to modify how certain financial contributions are treated in the budgeting processes of local municipalities in New Jersey. Specifically, it proposes to exempt contributions made to volunteer first aid or rescue squads from the current property tax levy cap and appropriation limits. This means that these vital services will not be restricted by the incremental budget limits imposed on local government entities, allowing for potentially increased funding for emergency services that rely on volunteer support.

Contention

There may be concerns surrounding the implications of this bill on local fiscal policies. While proponents advocate for better funding for essential emergency services, critics argue that exempting certain budget items could lead to an imbalance in how municipalities prioritize their budgetary needs. They may express worry that this could ultimately weaken the effectiveness of budget caps designed to promote fiscal responsibility among local governments. Additionally, some may question whether other critical areas of public service might suffer from funding shortfalls as a result of this bill’s enactment.