New Jersey Division of Local Government Services Local Finance Notice 2023-05

Local Finance Notice 2023-05 CY2023/SFY2024 State Aid Certification

On February 28, 2023, Governor Phil Murphy presented his proposed FY 2024 budget to the State Legislature. No municipality will receive less total State formula aid in support of its CY 2023 or SFY 2024 budget than it received in support of its prior year budget. Please note that Municipal Relief Fund Aid issued in CY 2022/SFY 2023 was a one-time appropriation.

Budget Certification

• The State Fiscal Year 2024 budget proposes a $9.9 million increase in Energy Tax Receipts Aid (ETR). For every municipality, this equates to a 0.7 percent increase over the combined Consolidated Municipal Property Tax Relief Aid (CMPTRA) and ETR Aid for CY 2022/SFY 2023.
• The CY 2023/SFY 2024 Aid Certification for each municipality has been posted on the Division’s Municipal State Aid webpage under the Individual Certifications of Municipal State Aid heading. The certifications are available on an Excel form for which individual schedules can be generated by selecting a municipality. Certifications must be obtained from the website; they are not mailed.
• Although the proposed budget serves as a guide to SFY municipalities, final SFY certifications will be posted once the state budget is adopted, thus accounting for any changes in the municipal aid numbers due to the legislative process and revised revenue estimates.

Municipal Relief Fund Aid

• The proposed FY 2024 State budget removes the FY 2023 appropriation for Municipal Relief Fund Aid.

Watershed Moratorium Offset Aid & Garden State Trust Aid

• The proposed FY 2024 State budget keeps the FY 2024 appropriation for Watershed Moratorium Offset Aid and Garden State Trust Aid at their respective FY 2023 appropriation of $2.218 million and $6.483 million.

Payment Schedule

• A final aid payment schedule will be provided in July, prior to the August 1st payment. Payments to most municipalities are made electronically through the Automated Clearing House (ACH) payment system.
• For this system to work properly, any changes in the municipality’s depository bank must be reported to the Division as soon as possible so the necessary changes can be made in the payment computer system. If the bank or account number changes, the Credit Authorization Agreement for Automatic Deposits form and instructions can be obtained from the State Office of Management and Budget’s forms webpage.

• The Division of Local Government Services will consider budgets introduced on the first regularly scheduled council meeting after March 31, 2023 timely introduced. However, applicants for Transitional Aid must introduce their budgets by the Transitional Aid application deadline

Local Finance Notice 2023-05

Please follow the link below to read more about these items and guidance on how your local unit can implement them: https://www.nj.gov/dca/divisions/dlgs/lfns/23/2023-05.pdf

Contact Wielkotz & Company, LLC Today

For further information on Local Finance Notice 2023-05 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.