FOR IMMEDIATE RELEASE: Thursday, February 26, 2015

Christie Administration Protects $1.5 Billion in Municipal State Aid

Fiscal Year 2016 Municipal State Aid To Help Local Governments Control Property Taxes


Trenton, NJ – Following the Christie Administration’s Fiscal Year 2016 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 2016. Secure, stable funding further enables local governments to control property taxes and demonstrate that municipal aid is a core priority of the Christie Administration. For fiscal year 2016, $1.5 billion will be available to municipalities through various programs and direct aid payments.

"This administration recognizes that municipal governments are once again facing tough choices, which is why municipal state aid is a core priority in this budget," said Governor Chris Christie. "I recognize that municipal governments are facing decreased revenues and fewer resources in this tough economy. That’s why we are asking local communities to do their part. Municipal officials must use this preserved aid and continue to use the 2% property tax cap, pension and health benefits changes, and a 2% cap on interest arbitration awards to drive down the cost of local government and control property taxes."

The fiscal year 2016 budget proposes level aggregate funding for Consolidated Municipal Property Tax Relief Aid (CMPTRA), Energy Tax Receipts aid (ETR), and Watershed Moratorium Offset aid. Funding for Transitional Aid (TA) will also continue, though prior recipients may see a reduction as the need for this transitional assistance is steadily reduced.

"As we continue to advance reforms to deliver sustainable, long-term property tax relief, we urge local governments to continue finding ways to operate more efficiently and reduce costs," said DCA Commissioner Richard E. Constable, III. "The DCA has proved that it is possible to work with municipalities to affect real change on how they spend taxpayer dollars. The Department will work to assist local governments in their efforts to maintain fiscal constraint while funding key programs and services."

The fiscal year 2016 budget proposal continues to fund the Transitional Aid to Localities Program at $107 million and reflects Governor Christie’s commitment to keeping this discretionary aid as a temporary program for municipalities who are transitioning to self-sufficiency. The number of municipalities receiving Transitional Aid continues to decrease　as towns have graduated from the program.　 It is anticipated that approximately nine municipalities will receive Transitional Aid in fiscal year 2016; awards will be based on aid applications submitted to the DCA. The DCA will continue to oversee and assist distressed municipalities to reduce their dependence on discretionary aid. 

A full list of municipal state aid figures for Fiscal Year 2016 is available on the DCA’s website at http://www.state.nj.us/dca/divisions/dlgs/resources/muni_stateaid.html.