I. Urgent Effort to Secure Federal Funding for all NJ Municipalities
Our partners at the National League of Cities (NLC) have launched an effort to secure CARES Act funding for all COVID-19 impacted municipalities, regardless of size. NLC Executive Director Clarence Anthony has written to U.S. Treasurer Steve Mnuchin, requesting a favorable interpretation of the new law.
Should the Treasurer fail to provide a timely and favorable interpretation, legislative action will be needed. And your action can help to make that a reality. Please consider the following.
Congress Members who represent municipalities under the 500,000 population threshold can sign on to a (Letter to Speaker Pelosi) authored by two of their colleagues.
Time is of the essence.
Please urge your member of Congress to sign the letter by filling out this form by COB
Wednesday, April 1.
Our partners at the National League of Cities (NLC) have launched an effort to secure CARES Act funding for all COVID-19 impacted municipalities, regardless of size. NLC Executive Director Clarence Anthony has written to U.S. Treasurer Steve Mnuchin, requesting a favorable interpretation of the new law.
Specifically, Section 601(d), provides:
“A State, Tribal government, and unit of local government shall use the funds provided under a payment made under this section to cover only those costs of the State, Tribal government, or unit of local government that—
(1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);
And, Section 601(g)(2) of the CARES Ac states:
“LOCAL GOVERNMENT.—The term ‘unit of local government’ means a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000.”
The particular issue is whether the prepositional phrase “with a population that exceeds 500,000” modifies all the political subdivisions listed (a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level) or modifies only the political subdivision immediately preceding it, “other unit of general government below the State level”.
The issue is important because it determines which political subdivisions are entitled to receive direct funding under the Coronavirus Relief Fund in Section 601.
II. State Budget & Income Tax Deadline Extension
This morning, Governor Murphy, Senate President Sweeney and Assembly Speaker Coughlin issued the following joint statement, “The ongoing COVID-19 pandemic has caused hardships, financial strain, and disruptions for many New Jerseyans and New Jersey businesses. As part of our response, we have reached agreement that the state income tax filing deadline and the corporation business tax filing deadline will be extended from April 15th to July 15th. Additionally, as part of the whole-of-government effort that is going into fighting COVID-19, we have agreed that the state fiscal year should be extended to September 30th. This will allow the Administration and the Legislature to focus fully on leading New Jersey out of this crisis, and to allow for a robust, comprehensive, and well-informed budget process later in the year. We are committed to working together to enact the necessary legislation and supplemental appropriations to accomplish these goals.”
We recognize the necessity of these actions. The League is in contact with the Administration and the Legislative Leaders as to how this agreement would impact local budgets. The League will advise of what learn and all developments.
Contact: Michael F. Cerra, Assistant Executive Director, mcerra@njlm.org, 609-695-3481 x120.
III. Time Sensitive Information Needed on Fiscal Impact for Federal Action
The National League of Cities and United States Conference of Mayors have worked together to develop a short, easy-to-complete survey to all municipalities to demonstrate the direct fiscal impact of the pandemic on municipal governments of all sizes. This information will be used to make the case in Congress for direct funding to all municipalities, regardless of population size. The information will also be useful here at home as we make our case on the state level. Responses are needed by the end of the day Friday, April 3, and it is imperative that we have as much participation as possible in order to make the best possible case. Please note: individual responses to the survey will not be released and only one response per municipality can be included. You can access the survey.
IV. April 1 Is Census Day
See a video message from National League of Cities CEO & Executive Director on the importance of Census Day.
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