New Jersey Division of Local Government Services Local Finance Notice 2025-08
Local Finance Notice 2025-08 New Jersey Raises Pubic Bidding and Reporting Thresholds Effective July 1, 2025
In an important update for public agencies and local units across New Jersey, the State Treasurer and the Office of the State Comptroller have announced significant adjustments to public bidding and reporting thresholds, effective July 1, 2025
Higher Bid Thresholds for Local and School Contracting Units
Under N.J.S.A. 40A:11-3(c) and 18A:18A-3(b), bid thresholds are adjusted every five years to reflect inflation and market conditions. The new thresholds are:
| Contracting Unit Type | Bid Threshold | Quotation Threshold (15%) |
| With Qualified Purchasing Agent (QPA) | $53,000 | $7,950 |
| Local (LPCL) without QPA | $17,500 (unchanged) | $2,625 |
| School (PSCL) without QPA | $39,000 | $5,850 |
Contracting units with a QPA must update local resolutions or ordinances to take advantage of the higher limits. Resolutions containing fixed threshold amounts must be amended to reflect these new values.
Special Cases: Roadwork, Transportation & College Contracts
- Roadwork projects under N.J.S.A. 27:2-1 and 27:16-16: Threshold remains at $24,200
- School transportation contracts: Threshold now $24,200
- County Colleges (N.J.S.A. 18A:64A-25.3): Threshold raised to $44,900
- State Colleges (N.J.S.A. 18A:64-54):
- Public works: $42,600
- Non-public works: $119,800
Pay-to-Play Rules Remain Unchanged
The “pay-to-play” threshold continues to be $17,500. However, under the Elections Transparency Act, municipalities can now delegate contract award authority for contracts under the QPA threshold to the purchasing agent. This should be reflected in local resolutions.
Comptroller Reporting Thresholds Also Increased
| Contract Value | Reporting Deadline |
| $3M to <$15.2M | Within 20 business days of contract award |
| ≥$15.2M | At procurement start, ≥30 days before solicitation |
| Emergencies >$3M | Within 30 business days of contract award |
Updated contract submission forms and more details are available at the State Comptroller’s contracting website.
Prevailing Wage Threshold Updated
As of July 1, 2024, the prevailing wage threshold for municipalities rose to $19,375, while for all other contracting units, it remains $2,000.
Key Takeaways for Local Units
- Review and update local procurement policies and QPA resolutions.
- Ensure staff are aware of new quotation and bidding thresholds.
- For large-scale procurements, align timelines with State Comptroller reporting deadlines.
- Stay current via the Division of Local Government Services and State Comptroller’s online resources.
Local Finance Notice 2025-08
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/2025/2025-08.pdf
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2025-08 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.
