May-16-08 DCA RELEASES PROPOSED FY 2009 MUNICIPAL STATE AID FIGURES
DCA RELEASES PROPOSED
TRENTON, N.J. – On Tuesday, May 13, Governor Corzine made a proposal to the State Legislature to revise the Consolidated Municipal Property Tax Relief Aid (CMPTRA) Program reductions originally proposed in the State’s FY 2009 budget (and affecting CY 2008 and SFY 2009 municipal budgets).
Today, the New Jersey Department of Community Affairs released the proposed municipal state aid figures. The revised numbers are available on the Department’s website at www.state.nj.us/dca/lgs/muniaid/08_aid/08-09_cmptrarest.shtml. The posting is advisory in nature, as the final allocation rests with the State Legislature and final passage of the State’s Fiscal 2009 budget.
The proposal would ensure that no community faces an increase in the average residential property tax bill of more than $100, as a result of the CMPTRA reduction that was proposed for small communities with populations of fewer than 10,000.
For municipalities with a population of under 10,000, 25 percent of what the CMPTRA cut would have been is restored (excluding transfers to Energy Tax Receipts). When the impact of the remaining aid reduction results in an increase of more than $100 on an average residential property, additional CMPTRA aid will be provided to limit the increase to $100.
“Governor Corzine has presented a budget that will get New Jersey’s finances back on the right track,” said Commissioner Doria. “The proposed restructuring of aid to towns encourages communities across the state to examine the benefits of municipal consolidation and shared services, but also recognizes the importance of state aid for our state’s smallest communities.”