New Jersey Division of Local Government Services Local Finance Notice 2024-05
Wielkotz & Company
March 14, 2024
Local Finance Notice 2024-05 CY 2024/SFY 2025 State Aid Certification
On February 27, 2024, Governor Phil Murphy presented his proposed FY 2025 budget to the State Legislature. No municipality will receive less total State formula aid in support of its CY 2024 or SFY 2025 budget than it received in support of its prior year budget. Please note that Municipal Relief Fund Aid issued in CY 2023/SFY 2024 was a one-time appropriation.
Budget Certification
- The State Fiscal Year 2025 Budget proposes a $7.2 Million dollar increase in Energy Tax Receipts Aid (ETR).
- For every Municipality, this equates to a 0.5 Percent increase over the ATR Aid for CY 2023/SFY 2024
- It also proposes level funding to all municipalities for Garden State Trust Aid and Watershed Moratorium Offset Aid. Under the proposed budget, for State Fiscal Year 2025, municipalities will no longer receive state aid in the Consolidated Municipal Property Tax Relief Aid category, this aid will be classified as Energy Tax Receipts Aid.
- 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.
Energy Tax Receipts
- Aid certifications reflect both last year’s and the current year’s allocation for ETR. The certifications also reflect Business Personal Property (BPP) responsibilities and those with responsibilities to pay aid allocated to fire districts under the old Supplemental Fire Services Program, in addition to the traditional split of BPP amounts between the municipality and school. All CY 2024 municipal budgets must reflect the certified aid.
Municipal Relief Fund Aid
- The proposed FY 2025 State budget removes the FY 2024 appropriation for Municipal Relief Fund Aid.
Watershed Moratorium Offset Aid & Garden State Trust Aid
- The proposed FY 2025 State budget keeps the FY 2025 appropriation for Watershed Moratorium Offset Aid and Garden State Trust Aid at their respective FY 2024 appropriation of $2.218 million and $7.983 million.
Local Finance Notice 2024-05
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/dlgs/lfns/2024/2024-05.pdf.
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2024-05 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.
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