New Jersey Assembly Bill A5308

New Jersey 2024-2025 Regular Session

• Introduced: 2/13/25
• Refer: 2/13/25

Caption

Requires Director of Division of Local Government Services in DCA to establish grant program to enhance local government efficiency; appropriates $1.5 million.

Impact

The program is expected to foster a culture of efficiency within local government by providing financial resources that facilitate operational reviews. Local governments that participate in the program will be required to contribute 25 percent of the grant amount toward the management enhancement review. Reports detailing the expenditures of grant funds and any operational efficiencies gained must be submitted within one year after receiving the grant. This accountability aims to ensure that taxpayers can see how improvements have been made and to foster best practices across all participating local units.

Summary

Assembly Bill A5308 establishes a grant program aimed at enhancing the efficiency of local government units in New Jersey. The bill directs the Director of the Division of Local Government Services within the Department of Community Affairs to create a management enhancement review grant program. Local government entities, including municipalities and counties, can apply for grants to engage management enhancement review consultants. These consultants will conduct performance assessments and offer recommendations for streamlining operations and reducing costs. The bill allocates $1.5 million from the General Fund to support these grants, with a maximum of $150,000 available for county units and $100,000 for municipal units.

Contention

Despite its potential benefits, the bill may encounter contention centered around the allocation of state funds and the effectiveness of the proposed reviews. Critics might argue that the program could create bureaucratic hurdles or that the efficiency gains may not justify the costs associated with hiring outside consultants. Furthermore, local governments may express concerns about their autonomy and whether state oversight through a grant program could lead to a one-size-fits-all approach that might not cater to specific local needs.