Garden State Times

Senate Republican Leader Anthony M. Bucco and Senate Republican Budget Officer Declan O’Scanlon have urged Governor Murphy to reinstate $150 million in "Municipal Relief Fund Aid" in his upcoming budget proposal for February 2025. The two senators highlighted the potential consequences of this funding cut, which was enacted in the current state budget adopted in June.

In their letter to the governor, Bucco and O’Scanlon warned that without restoration of these funds, municipalities might face increased property taxes or cuts to local services next spring. They stated, “A $150 million municipal aid cut in the State’s current budget adopted in June will be reflected for the first time in municipal budgets adopted this coming Spring. The impact of the cut will be property tax increases and/or local service cuts across the State unless you propose a restoration in your final budget proposal in February. We strongly urge you to do so.”

The senators noted that prior budgets included this funding as part of a bipartisan effort to restore Energy Tax Receipts and other municipal aid gradually. They provided specific examples from their districts, such as Morristown losing $300,000 and Middletown facing a $630,000 shortfall. Overall losses could exceed $10 million across their counties.

Statewide impacts are also significant, with Elizabeth and Woodbridge each expected to lose $3 million, while Camden faces a loss of $10.5 million. Newark has already experienced an $11 million reduction leading to a financial crisis necessitating an emergency loan from the administration.

Bucco and O’Scanlon emphasized that these cuts come amid high inflation and increased health insurance premiums for municipalities still under the State Health Benefits Plan. They argued that adopting some of their proposed state budget savings could prevent potential property tax hikes or reductions in essential services like law enforcement and sanitation.

The letter concluded with a request for Governor Murphy's consideration as he formulates his final budget plan.