Senator Michael Testa has urged Governor Murphy to reinstate the transparent formula-based aid for municipalities in the fiscal year 2026 budget. This call comes after the elimination of such aid from the fiscal year 2025 state budget.
In his letter to Governor Murphy, Senator Testa emphasized the impact of cutting a fair formula property tax relief program on municipalities and taxpayers, particularly amid high inflation and recent increases in state-run health insurance plan premiums.
“The cut to a fair formula property tax relief program will hit municipalities and property taxpayers hard after years of high inflation. It will hit particularly hard in communities stuck in a State-run health insurance plan with its recent 16% premium increase,” stated Senator Testa.
He further suggested that if income tax revenues are not used solely for restoring the $150 million eliminated from fair property tax relief, alternative solutions should be considered. “If your budget does not ensure income tax revenues are used solely for fair formulas as a way to restore the elimination of $150 million in fair property tax relief, there are other options. My colleagues and I proposed billions of dollars in State budget savings, program reforms, and non-tax revenues that have not been embraced,” he added.
The full content of Senator Testa’s letter is available for public reading.
