I. State
a. COVID-19 Update
Today Governor Murphy announced that there were 881 new positive cases and an additional 6 confirmed deaths resulting from COVID-19. To date, there have been 212,013 confirmed cases, and 14,376 confirmed deaths. The rate of transmission is at 1.19.
Since our last update, Governor Murphy has not issued any COVID-19 related executive orders.
On Monday, the Governor announced that locations providing remote-learning supervision services during the school day must be licensed as childcare centers. These include, for example, dance studios, martial arts studios, and churches. Emergency regulations from the Department of Children and Families (DCF) allow these centers to undergo an expedited licensure process. For more please see our recent blog post.
Also, on Monday, the Governor announced that Halloween activities can go forward with local guidance provided by the New Jersey Department of Health ( DOH) to local officials, schools, outside organizations, and businesses. Please see our recent blog post for more information on the Halloween guidance.
On Tuesday, the Governor added New Mexico to the list of state and territories subject to the Travel quarantine and advisory list. There are currently 35 states and territories subject to the Travel quarantine advisory.
For the week ending October 3, the New Jersey Department of Labor (DOL) received 23,607 new unemployment applications. The Labor Department announced it has begun approving FEMA Lost Wage Assistance benefits for people who were unemployed between August 1 - September 5.
Contact: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481 x120.
b. CARES Relief Funding for Municipalities
At a press conference earlier today, Governor Murphy announced the distribution of $60 million in CARES emergency relief funding directly to the 12 counties and the municipalities within who did not qualify under the first round of CARES funding distribution. These counties are Atlantic, Burlington, Cape May, Cumberland, Gloucester, Hunterdon, Monmouth, Morris, Salem, Somerset, Sussex and Warren. Just over $20 million will be distributed to those 12 county governments and just under $40 million will be distributed directly to municipalities.
The allocation is based on a formula developed by the Department of Community Affairs based on a number of factors, such as infection rates, fiscal stress and the service expenditures for the governments. These funds cannot be used as replacement revenue but to cover eligible expenditures between March 1 and the end of the calendar year.
Additional information will be forthcoming on the guidelines for application and use, as well as a breakdown based on the local jurisdictions.
Contact: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481 x120.
c. Hospital Property Tax Subsidy Bills Held From Committee Hearing
Last week, we alerted you to three bills that had been scheduled for consideration yesterday at the Senate Health, Human Services and Senior Citizens Committee; A-1135/S-357 and S-624. These bills would seek to extend property tax exemption to hospitals organized as a non-profit entity and instead require them to pay a “community service contribution fee.” The League has been in strong opposition to these bills and prior versions of the legislation.
Fortunately, these bills were held from the committee agenda and were not considered. This is important because it signals that the sponsors and other legislators may share some of the League’s concerns but, this does not mean that our advocacy is over. In fact, S-357 has been transferred to the Senate Budget and Appropriations Committee, which is expected to meet within the next two weeks. And, the full Assembly has already voted to approve A-1135.
The League will be reaching out to these bills’ sponsors and to other legislators to convey our concerns, and we urge our members to continue to do the same. We thank all of our members who have been active in efforts to ensure the concerns of local governments are heard.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481 x137.
d. Administration Still Working on New Local Emergency Funding Program
As reported last week, the League’s Officers have contacted officials in the Governor’s Office, seeking information, and encouraging timely action on the proposed $120 million Local Government Emergency Fund (LGEF). That fund will represent a share of the State’s direct Coronavirus Relief Fund allocation, which was provided through the Federal CARES Act Coronavirus relief bill. This program is intended to defray eligible municipal public safety and public health expenses incurred by towns in the 12 counties that did not receive direct federal funding through the CARES Act’s Coronavirus Relief Fund (CRF). This fund is also meant to support municipal investments in emergency dispatch and public health resilience.
Since then, the Department of Community Affairs has provided LGEF information to the Office of Legislative Services as follows:
The Administration is developing an application for the Local Government Emergency Fund that will comply with the dynamic U.S. Treasury guidance and allow eligible applicants to benefit before the December 30 deadline. CRF allocations are subject to future statutes that modify the federal CARES Act, new federal appropriations, confirmation of actual expenditures incurred, the identification of additional unmet COVID-19 needs, and new guidance from the U.S. Treasury.
According to the latest U.S. Treasury guidance, these funds could not be used to cover revenue losses, but only for increased spending caused directly by the pandemic.
We will continue to encourage action on the LGEF, and we will keep you posted.
Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.
e. CY 2021 Municipal Budget Cap Information
The Division of Local Government Services (DLGS) has issued Local Finance Notice 2020-23 regarding the CY 2020 Municipal and County Budget and Cap Information.
There are two caps that limit local budgets. One is the 1977 budget cap law, which caps appropriations increases, and the other is the 2010 levy cap law, which caps levy increases. The 1977 budget cap law requires the DLGS to promulgate the Cost of Living Adjustment (COLA). The COLA for the CY 2021 budget is 1.0%. The governing body may pass a COLA ordinance, increasing the appropriation cap base to 3.5%. Cap bank balances from 2019 and 2020 are available for use in 2021.
In addition, both the 1977 and 2010 cap laws include a cap exception for Group Health Insurance. The State Health Benefits increase for CY 2021 is 2.8%. Therefore the CY 2021 Group Health Insurance exemption under the 1977 cap is 0 and under the 2010 levy cap is 0.8%.
Contact: Lori Buckelew, Assistant Executive Director, lbuckelew@njlm.org, 609-695-3481 x112.
f. Election Question: Voters Will Choose to Extend Property Tax Relief for Veterans
This election, voters will have the chance to decide whether New Jersey military veterans will receive property-tax relief via one of this year’s public questions. State Public Question #2 seeks to amend New Jersey’s Constitution to provide property tax breaks to military veterans and their spouses. Our blog post outlines all the details that you need to know.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481 x116.
g. Election Question: Changing Legislative Redistricting Schedule if Census Data is Delayed
Included on this year’s general election ballot is State Public Question #3 which asks New Jersey voters to amend the State constitution to change the legislative redistricting schedule if census data is delayed.
If New Jersey does not receive data from the U.S. Census Bureau by February 1, 2021, new legislative districts may not be ready in time for State legislative elections in 2021. If approved, the commission will adopt the new districts after the November general election, but no later than March 1, 2022. The new districts will be used starting with legislative elections in 2023 and will continue to be used until new districts are again created by the Apportionment Commission after the next federal census.
For more information on the public question please see the League’s recent blog post.
Contact: Paul Penna, Legislative Analyst, ppenna@njlm.org, 609-695-3481 x110.
h. Assembly Committee Approves Bill Mandating Additional Municipal Master Plan Element
The Assembly Environment and Solid Waste Committee, yesterday, approved legislation, which the League opposes; A-2785/S-2607. These bills would require the land use plan element of a municipal master plan to include a climate change-related hazard vulnerability assessment. Aware of the potential hazards facing our communities due to climate change, the League is supportive of the intent. However, we have concerns that the mandatory aspects of this bill, without the proper offsetting appropriation to account for the additional municipal cost, make this new requirement an unfunded mandate.
S-2607 has already passed the full Senate by a vote of 28-11. The Assembly version is now likely to be put to a vote before the full Assembly on October 29, the next scheduled voting session. The League continues to advocate for municipal interests and will keep our members updated on this legislation as it continues through the process.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481 x137.
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