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news release

P.O. Box 600
Trenton, NJ

Contact: Erin Phalon

RELEASE: October 7, 2005


NJDOT awards $67.5 million in grants to New Jersey municipalities
Local aid will fund street improvement projects and relieve property taxes


(Trenton) Commissioner Jack Lettiere today announced that the New Jersey Department of Transportation (NJDOT) will award $67.5 million in Municipal Aid to fund street improvement, rehabilitation and safety projects in 413 New Jersey towns.


"The Municipal Aid program enables the Department of Transportation to stimulate economic growth and improve New Jersey's quality of life by fixing our road networks without burdening local taxpayers," said Lettiere.    

Municipal Aid grants provide direct property tax relief for municipalities that would otherwise devote local tax revenue to these projects. Municipal governments maintain over 25,000 miles, or approximately 70 percent, of New Jersey's 36,000 miles of roadway. Local property taxes seldom provide sufficient funds for proper roadway repair and maintenance.


"Every penny that comes from the Municipal Aid program is a penny that is not taken out of the taxpayer's pocket," said Assemblyman John S. Wisniewski (D-Sayreville), Chairman of the Assembly Transportation Committee. "This funding from the Transportation Trust Fund is vital to the maintenance of our transportation infrastructure. We need to find a funding source for the Trust Fund so that projects like these can continue."


NJDOT encourages municipalities to apply for Municipal Aid funding through its Local Aid Division. The grant program covers a variety of projects, including road resurfacing, rehabilitation, reconstruction and signalization.   


The Municipal Aid program is directly funded by the Transportation Trust Fund.   NJDOT allots each county a specific funding amount based on its population and road mileage and distributes funds to towns based on field investigations and engineering evaluations of proposed projects.   NJDOT provides 75% of the amount of the grant when it awards a contract and the remaining 25% upon completion of the project.


NJDOT's Municipal Aid grant program is very popular and extremely competitive.   This year, NJDOT will fund 413 - or 52% - of the 788 grant requests received. Funding for this popular program also is limited; NJDOT received over $200 million in requests.  


In addition to the Fiscal Year 2006 Municipal Aid funding, NJDOT recently awarded $5.2 million to fund Safe Streets pedestrian safety projects in 60 New Jersey towns.

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  Last Updated:  November 15, 2006