I. State Issues
a. S-330 – Energy Tax Receipts Tax Relief Fund Restoration
On Thursday, the State Senate approved by a vote of 39-0, S-330, which would restore distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund (ETR ) over two years and require additional aid to be subtracted from municipal property tax levy.
S-330 amends P.L.1997, c.167 to require the distribution of additional State funding to municipalities. The bill will begin the restoration of approximately $331 million in reductions to Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts Property Tax Relief Aid first imposed in FY 2009 due to State budget constraints.
The League has long advocated the restoration of this funding and we have written you in the last few weeks and asked you to reach out to your Senator and urge for support S-330. Following that, the bill was favorably reported out of the Senate Urban and Community Affairs Committee on January 27, as well as Senate Budget and Appropriations Committee on February 28. Both committee votes were unanimous and bipartisan.
The Senate Budget and Appropriations Committee made two significant amendments to the bill. The first changes the phase-in of the restoration from 5 years to 2 years. The second amendment would prohibit a municipality from anticipating the additional State payment distributed from the ETR for purposes of preparing its annual budget; and provides for an amendment to its local budget to properly reflect the total amount distributed to the municipality from the ETR funding.
While we continue to support the restoration of the ETR funding back to municipalities, we believe the amendment that deals with the local municipal budget and requires an amendment to lower the levy due to receipt of additional ETR funding to be unnecessary. This concern has been brought to the attention of the sponsors in both the Senate and the General Assembly.
Our thanks to Senator Troy Singleton and Senate President Nicholas Scutari, who co-sponsor the legislation. S-330 now heads to the General Assembly for consideration.
Contacts:
b. Action Needed: Assembly Committee Set to Review Bill That Would Preempt Municipal Zoning
On Monday, the Assembly Community Development and Affairs Committee is scheduled to review A-1294. The bill would authorize the conversion of certain office parks and retail centers to mixed-use developments regardless of municipal zoning regulations. Under the legislation, a mixed-use development, that is, those containing both non-residential and a residential component, would be a permitted use, not requiring a variance, when the application seeks to convert an office park or retail center.
While the League is cognizant of the evolving nature of development trends within the state, we oppose A-1294 as it undermines the careful planning and consideration that has gone into municipal zoning. Further, the Municipal Land Use Law already provides a mechanism that would allow for necessary zoning changes through variance approval.
While the League is cognizant of the evolving nature of development trends within the state, we oppose A-1294 as it undermines the careful planning and consideration that has gone into municipal zoning. Further, the Municipal Land Use Law already provides a mechanism through variance approval that would allow for necessary zoning changes.
We ask that you review A-1294 and consider reaching out to your legislators to express concerns with this attempt to preempt local zoning.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
c. Future of Work Task Force Report
Last week, the New Jersey State Future of Work Task Force issued its report. The Future of Work Task Force was established by Executive Order 41 in 2018 by Governor Phil Murphy to evaluate how technological advancements will shape the future of New Jersey’s economy and workforce.
Learn more about the recommendations by reading the League’s recent blog post.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609 695-3481, x110.
d. Opioid Manufacturers Approve Settlement with Local Governments
Last Friday, it was announced that the “Big Three” drug distributors AmerisourceBergen, Cardinal Health, and McKesson, along with opioid manufacturer Johnson and Johnson, approved participation in the national opioid settlement. Approval of the defendant-manufacturers was the next step required in the national opioid settlement after 100% of eligible New Jersey local governments and more than 90% of all eligible local governments across the country confirmed participation in the settlement.
According to the press release, initial deposits were put into escrow in 2021 and the first round of funding for many programs could be delivered as soon as May 2022 following a consent judgment within each participating state. Additional funds are expected to be received by July 2022. The settlement also calls for injunctive relief that requires the “Big Three” drug distributors and Johnson and Johnson to make significant changes to corporate practices to protect consumer health and welfare.
On a related note, the Senate passed S-783 on Thursday. It creates creates the Opioid Recovery and Remediation Fund, a dedicated, non-lapsing fund to supplement substance abuse prevention and treatment programs and services in the state. Money from the state’s share of the national opioid settlement will be placed into this fund. The bill will also create a public health education campaign, and create an Advisory Council in the Department of Human Services to ensure the funds are used effectively and equitably.
The League supports this important measure. S-783 will ensure the settlement money is appropriately spent to combat the opioid epidemic at all levels of government. The Assembly companion bill A-1488, passed the Assembly Health Committee and has been referred to the Assembly Budget Committee where it awaits action.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
e. Senate Committee Unanimously Releases S-1290 Increasing Pay for Poll Workers
The Senate Committee on Wagering, Tourism and Historic Preservation unanimously passed S-1290. This legislation increases pay for poll workers from $200 for a 14-hour shift to $300 for a 14-hour shift. The bill also appropriates $7 million to the Department of State to cover the increase costs.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
f. Department of Community Affairs Issues Local Finance Notice 2022-05
This week, the Department of Community Affairs (DCA) issued Local Finance Notice 2022-05 (LFN 2022-05), outlining the process for submitting Financial Disclosure Statements for the 2022 filing year. The Local Government Ethics Law (LGEL) requires that local government officials annually file a financial disclosure statement on or before April 30. LFN 2022-05 outlines the filing procedure including the statutory requirements, the role of municipal clerks and other local government entities, and lastly the local officials that are required to file a financial disclosure statement.
The League recommends reviewing LFN 2022-05 with your administrator and council before submitting any financial disclosure statements for 2022.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
g. Governor Murphy Announces ANCHOR Property Tax Relief Program
On Thursday at a press conference in Fair Lawn, Governor Phil Murphy announced the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program, which if approved by the Legislature, will replace and expand the current Homestead Rebate Program. The new program will provide rebates to nearly 1.8 million New Jersey homeowners and renters.
The Governor’s proposal increases both the average rebate and total program amount over three years. Homeowners making up to $250,000 per year could be eligible to receive an average $700 rebate in Fiscal Year 2023 to offset property tax costs and renters making up to $100,000 per year could receive up to $250. Two years later eligible households would receive $1,150 on average and the overall cost of the program would increase to $1.5 billion. The Governor will present this program during his budget address next Tuesday.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609 695-3481, x110.
h. Moody’s Upgrades State’s Credit Rating
This week, Moody’s Investors Service upgraded New Jersey’s Credit rating to A2 from A3, with a stable outlook. This marks the first credit upgrade from a major agency since S&P last upgraded the state’s rating in 2005. Increased state pension contributions, along with debt reduction, were cited as some reasons for the credit upgrade. An improved credit rating can mean significant cost saving for taxpayers as it decreases the cost of annual borrowing for the state.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
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