I. State Issues
a. Reissue of CY 2022/SFY 2023 State Aid Certification
The Division of Local Government Services has issued Local Finance Notice 2021-13, regarding the reissue of the state aid payment, including Municipal Relief Funds, and payment schedule dates. As part of the state’s budget package, in addition to Energy Tax Receipts and Consolidated Municipal Property Tax Relief (CMPTRA), $75 million in Municipal Relief Funds was included as the first step towards full Energy Tax Receipts restoration. According to the Local Finance Notice if the municipality has already adopted their CY 2022 budget they must establish a reserve for the revenue received and not anticipated in the CY 2022 budget. The revenue should be anticipated in the CY 2023 budget. If a municipality has not yet adopted their CY 2022 budget the funds must be considered anticipated revenue by amendment before adoption of the CY 2022 budget.
The State’s adopted FY 2023 budget keeps funding for Energy Tax Receipts, CMPTRA, and Watershed Moratorium Offset flat. The appropriation for the Garden State Trust Aid was reduced to the FY 2021 level of $6.483 million. The FY 2022 increase of 54.1% was not included in the FY 2023 state budget.
We suggest you review this Local Finance Notice with your Chief Financial Officer.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
b. Acting State Comptroller Issues Report on Municipal Sick and Vacation Leave Policies & League Briefing on Report
The Acting State Comptroller Kevin Walsh issued a report on the Review of Sick and Vacation Leave Policies in New Jersey. The report reviewed the policies, ordinances, contracts, and survey results of 60 municipalities with a population greater than 10,000. The Acting State Comptroller in a press release stated “the overwhelming majority of New Jersey towns it sampled are wasting taxpayer funds by making and agreeing to make excessive sick leave payments to public employees.” However, according to the report the State Comptroller’s Office did not include an in-depth review of the financial records of the 60 municipalities to determine what payments were actually made.
The report makes various recommendations the 60 municipalities audited, all other local governments and the legislature. For more on the report please see our blog post.
The League is hosting a briefing on municipal sick and vacation leave policies and the recent State Comptroller Report on Thursday, July 14 at 12 noon with the League's Labor Relations Counsel Joe Hannon, Esq, Partner at Genova Burns and League's Labor Consultant Matt Watkins. Register for the free briefing today.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
c. Municipalities Set to Receive First Payments from National Opioid Settlement
First payment to participating municipalities from the National Opioid Settlement are ready to be sent. Participating municipalities should be on the lookout for email communications coming from the settlement Directing Administrator, BrownGreer PLC asking them to establish accounts in the National Opioid Settlements Portal. The Portal will be the primary means for participating municipalities to submit information and documentation to BrownGreer. Once the necessary information is uploaded into the Portal payment can be made to your municipality.
For those with questions, BrownGreer PLC has set up a communications center with a team of case managers who will work with local governments receiving money. The communications center can be reached at DirectingAdministrator@nationalOpioidSettlement.com or (888) 441-2010. Additional information can also be found in the notice your municipality received from the New Jersey Attorney General’s office regarding the next steps to receive the first settlement payment.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
d. Lunch and Learn Briefing with Department of Community Affairs on the New Lead Based Paint Hazards and Associated Inspection Requirements
Register for free webinar with Kia King, Director of Policy & External Affairs for the Department of Community Affairs and Marie Daniels, Program Specialist 2, Regulatory Program, Code Development Unit, Division of Codes and Standards, as they provide a general overview of lead-based paint hazards and the associated requirements for municipalities under P.L. 2021, Chapter 182. The webinar will be held Friday, July 15, 2022, from 12:00 p.m. to 1:00 p.m. As a reminder, this new law takes effect on July 22, 2022.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
e. NJ Supreme Court Clarifies Municipal Vacancy Law
An opinion issued this week by the Supreme Court of New Jersey provides clarity to the Municipal Vacancy Law. In Linden Democratic Committee v. City of Linden, the Supreme Court examined the provisions of the Municipal Vacancy Law dealing with the appointment of a vacant and unexpired municipal council seat.
The matter centered on whether the governing body was required to fill a vacant seat – which would mean selecting from a list of three candidates provided by the incumbent’s political party – or if the governing body could use their discretion to leave the seat vacant – allowing for an interim period between the occurrence of the vacancy and the general election where the seat would remain vacant.
The Supreme Court overturned the Appellate decision which had determined that there was a divergence in the Municipal Vacancy Law which created differing requirements regarding the filling of vacant seats, based on whether a municipality holds partisan elections or non-partisan. The Appellate Division had ruled that a municipality holding a partisan election indeed had discretion on whether or not to fill the vacant seat, whereas those municipalities holding non-partisan elections are required to fill the seat, using the list of three names from the incumbent’s political party, where applicable.
In overturning the Appellate decision the Supreme Court found, after a review of legislative history, that the Municipal Vacancy Law as amended over the course of years, required the municipality to make a selection from the three choices presented by the incumbent’s political party. There was no discretion left to the governing body to determine whether or not to select from this list or to leave the seat vacant.
The League encourages you to review this decision with your municipal attorney, municipal clerk, and other professional for more information.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
f. Governor Signs County Option Hospital Fee Program
Governor Murphy signed into law A-4091/S-2729, which makes the County Option Hospital Fee Pilot Program permanent and expands the definition of “participating county” under the program. The County Option Hospital Fee Program was established in November 2018 to support local hospitals in designated high-need areas to ensure continued access to critical healthcare services for vulnerable populations. The program was set to expire in June 2026. P.L. 2022, c. 61 took effect on July 5, 2022.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
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