Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over two years; prohibits anticipation of certain revenue in municipal budget; requires additional aid be subtracted from municipal property tax levy.
Impact
The bill stipulates that municipalities will receive an aid increase equivalent to 50% of the difference between the ETR Aid they received in the Fiscal Years 2008 and 2012. This restoration is crucial as it aims to rectify the funding shortfalls experienced in recent years, thereby allowing local governments to better address community needs and maintain essential services. Furthermore, starting from Fiscal Year 2024, municipalities will benefit from full restoration of the aid amounts previously available.
Summary
Senate Bill 1387 aims to enhance financial support for municipalities in New Jersey by increasing distributions from the Energy Tax Receipts Property Tax Relief Fund. This initiative comes in the wake of previous budget constraints that led to significant reductions in the Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts Property Tax Relief Aid (ETR Aid) distributed to local governments from Fiscal Years 2009 through 2011. The proposed legislation will restore approximately $331 million in aid over a two-year period, ensuring that municipalities receive a fairer share of financial support for their essential services.
Contention
One notable aspect of SB 1387 is its provision that prohibits municipalities from anticipating the receipt of state aid payments when preparing their annual budget. This measure ensures proper fiscal management but could create contention as some municipalities might argue that it limits their ability to adequately plan their budgets based on available resources. Additionally, the requirement that municipalities subtract any additional ETR aid from their adjusted tax levy could potentially ignite debate over budgeting practices and local fiscal autonomy.
Same As
Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over two years; prohibits anticipation of certain revenue in municipal budget; requires additional aid be subtracted from municipal property tax levy.
Carry Over
Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over two years; prohibits anticipation of certain revenue in municipal budget; requires additional aid be subtracted from municipal property tax levy.
Carry Over
Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over two years; prohibits anticipation of certain revenue in municipal budget; requires additional aid be subtracted from municipal property tax levy.
Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over two years; prohibits anticipation of certain revenue in municipal budget; requires additional aid be subtracted from municipal property tax levy.
Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over five years to restore municipal aid reductions; requires additional aid to be subtracted from municipal property tax levy.