As we previously reported, the State’s proposed FY2026 Budget of $58.1B recommends a $649.3M appropriation for Consolidated Municipal Property Tax Relief Aid (CMPTRA) and $805.6M for Energy Tax Receipts Property Tax Relief Aid totaling $1.45B. The proposed CMPTRA appropriation is flat, as in past years, and would be transferred to Energy Tax Receipts Property Tax Relief Aid (ETR). As a result, the statutory CMPTRA formula would remain underfunded, and no municipality would receive CMPTRA in SFY2026. In addition, the proposed SFY2026 does not include any appropriation for the Municipal Relief Fund. As a reminder, appropriations to the Municipal Relief Fund were made in FY23 ($75M) and FY24 ($150M) to offset the loss of Energy Tax Receipt funding.
The League is once again calling on the calling upon the Governor and Legislature to fully fund the Energy Tax Receipts Property Tax Relief Act. The continued diversion of dedicated energy tax receipts to the State has jeopardized critical property tax relief funding. Municipalities have made difficult choices when funding was reduced and have been forced to reduce staff, cut or reduce services, and find other ways to keep balanced budgets. This much-needed funding can be used to support the municipal budget and provide funding for critical needs in our municipalities.
It is well past time for the diversion by State officials of this municipal funding intended for local property tax relief to end. Municipal governments currently are facing stark financial challenges and difficulties, including a significant hike in healthcare premium costs for our employees, increases in pension contributions, increased insurance costs, and much mor —all driving costs that will ultimately be borne by property taxpayers without relief.
Now is the time to consider adopting the sample resolution calling for the full restoration of Energy Tax Receipts.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112 or Erin Knoedler, Legislative Analyst, EKnoedler@njlm.org, 609-695-3481, x116.