In an excerpt from the letter, Sens. Bucco and O’Scanlon said:

“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 full letter is available below or click here to view a copy.

Dear Governor Murphy:

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 aid cut in question is attributable to the total elimination of $150 million in funding known as “Municipal Relief Fund Aid.” That funding was in the State’s two prior budgets. It had been included as part of a bipartisan initiative to phase in a restoration of Energy Tax Receipts and other municipal aid over several years.

In our own legislative districts, Morristown’s budget will lose $300,000 and Middletown will lose $630,000. Losses will exceed $10 million throughout our respective counties. But impacts are statewide. Elizabeth and Woodbridge — respectively in the Senate President’s and Speaker’s legislative districts — will lose $3 million each in upcoming budgets. Camden will lose $10.5 million.

There are a few municipalities whose current budgets already reflect the aid cuts. They are canaries in the coal mine. Newark’s $11 million cut resulted in a budget crisis, and your Administration then gave the city an emergency “loan” to prevent insolvency.

The aid cut will hit municipalities after years of high inflation. And it will hit those municipalities remaining in the State Health Benefits Plan just as their taxpayers and employees start paying 16% higher health insurance premiums being charged by the State.

We have proposed billions of dollars in State budget savings, program reforms, and non-tax revenue ideas over the past several years that have gone ignored. Embracing just some of our ideas would allow restoration of the cut and prevent property tax spikes and/or reductions in local services that could potentially include law enforcement and sanitation.

Thank you for considering our request as you develop your final budget proposal.

Sincerely,

Senator Anthony M. Bucco, Republican Leader

Senator Declan J. O’Scanlon, Jr., Republican Budget Officer

c Members Board of Directors, League of Municipalities

Mike Cerra, Executive Director, League of Municipalities