Senator Holly Schepisi has urged Governor Murphy to reinstate transparent formula-based aid for municipalities in the upcoming fiscal year 2026 budget. This request follows the elimination of such aid from the fiscal year 2025 state budget.
In her letter to the governor, Senator Schepisi expressed concern about the impact of this cut on municipalities and property taxpayers, particularly during a period of high inflation. She highlighted the additional burden on communities involved in a State-run health insurance plan that recently saw a 16% increase in premiums.
“The cut to a fair formula property tax relief program will hit municipalities and property taxpayers hard after years of high inflation,” she stated. “It will hit particularly hard in communities stuck in a State-run health insurance plan with its recent 16% premium increase.”
Senator Schepisi emphasized the need for income tax revenues to be used solely for fair formulas to address the $150 million reduction in property tax relief. She mentioned alternative solutions proposed by her and her colleagues, which include state budget savings, program reforms, and non-tax revenues that have yet to be considered by the administration.
“My colleagues and I proposed billions of dollars in State budget savings, program reforms, and non-tax revenues that have not been embraced,” she noted.
The full letter is available for public viewing.
