September 20, 2011 - DCA Announces $32 Million in State Aid for City of Newark
DCA Announces $32 Million in State Aid for City of Newark
Short-Term Loan Requires State Oversight and Spending Restraints
TRENTON, NJ – New Jersey Department of Community Affairs Commissioner (DCA) Lori Grifa today announced that DCA’s Division of Local Government Services will award $32 million in aid to the City of Newark, which together with spending cuts and fiscal initiatives will close a $57 million gap in the City’s Calendar Year 2011 budget.
The aid will be available as a short-term loan conditioned on State oversight, including appointment of a State Fiscal Oversight Officer.
The City will be required to enter into a Memorandum of Understanding (MOU) with the Division of Local Government Services in substantially the same form as the standard agreement for municipalities receiving Transitional Aid.
Click on the following link to view a copy of the letter from Division of Local Government Services Director Tom Neff to the Newark Mayor and Council.
Newark loan letter with updated Memorandum of Understanding [560KB PDF]