New Jersey Division of Local Government Services Local Finance Notice 2022-18

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Wielkotz & Company
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October 19, 2022
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Local Finance Notice 2022-18 Calendar Year 2023 Municipal and County Budget Cap Information

  • Under the 1977 cap law, municipalities and counties are prohibited from increasing their final appropriations by more than 2.5% unless action is taken by the governing body to increase their final appropriations subject to the cap to the statutorily permitted three and a half percent (3.5%).
  • A municipality or county may increase the COLA percentage up to 3.5% or bank the difference between its final appropriation subject to the cap and 3.5% for up to two years.

Using the Allowable Percentage Increase

  • After January 1st, a cap increase ordinance must be introduced by the governing body, and a public hearing held at least 10 days after the publication date. The ordinance takes effect immediately upon passage.
  • The 1977 cap law includes a cap exception for Group Health Insurance, and the 2010 levy cap exception is for increases over 2%. The increase for CY 2023 is 19.6%, so the increase will be 19.6% for the levy cap calculation.

Local Finance Notice 2022-18

Please follow the link below to read more about these items and guidance on how your local unit can implement them:

Contact Wielkotz & Company, LLC Today

For further information on Local Finance Notice 2022-18 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or

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