Christie Administration Preserves Municipal State Aid

Fiscal Year 2014 Municipal State Aid to Help Local Governments Control Property Taxes

TRENTON, N.J. – Following the Christie Administration’s Fiscal Year 2014 Budget proposal, which preserves municipal aid at last year’s level, the New Jersey Department of Community Affairs (DCA) today released municipal state aid figures for the coming fiscal year. Governor Christie’s property tax reforms and stable aid funding are helping drive down the cost of local government and control property taxes for residents across New Jersey. The municipal aid funding total for Fiscal Year 2014 is $1.364 billion.

“This preserved funding means no town in the state will see a decrease in formula municipal aid for the upcoming year. It also demonstrates that municipal aid is a core priority of my Administration,” said Governor Christie. “Together with bipartisan reforms such as the 2% property tax cap, pension and health benefits changes, and a 2% cap on interest arbitration awards, we are delivering real relief to property taxpayers in New Jersey as evidenced by two consecutive years of the smallest property tax increases in two decades.”

In 2011, New Jersey homeowners saw a statewide average rise of 2.4% in property taxes. In 2012, the statewide average increase was just 1.4%, the lowest in 24 years.

“The Christie Administration is by no means finished with property tax reform. My Department stands ready to assist the Governor in his efforts at preventing municipalities from increasing user fees, ending accumulated sick and vacation leave payouts for government employees, and giving municipalities greater flexibility in removing barriers to shared services,” said DCA Commissioner Richard E. Constable, III. “Working with Governor Christie, we are committed to doing whatever we can to ensure that sustainable, long-term property tax relief continues.”

The fiscal year 2014 budget proposal continues to decrease the Transitional Aid to Localities Program, which reflects Governor Christie’s commitment to keeping this discretionary aid as a temporary program for municipalities  that are transitioning to self-sufficiency. The coming fiscal year’s program is funded at $94.5 million, a reduction of $14.2 million from the FY13 appropriation. In the program’s first year in fiscal year 2011, 22 municipalities received aid. That number dropped to 11 municipalities in fiscal year 2012 and 10 municipalities in the current fiscal year. Transitional Aid awards are based on aid applications submitted to the DCA. The DCA will continue to oversee and assist distressed municipalities to help reduce their dependence on discretionary aid.

The new municipal state aid figures are available on the DCA’s website at Click on “Feb. 27th, 2013 - CY 2013/SFY 2014 Aid Certification Excel Workbook” under Hot Topics.