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State
SHBP Municipalities: Please Continue to Reach Out to Governor & Your Legislators The New Year has come and the 379 municipalities participating in the State Health Benefits system, along with their employees, and ultimately their taxpayers, will still have to fund a 22% increase in health benefits costs, unless an immediate solution is reached. It is imperative that the Governor and your legislators hear directly from you about the negative impacts this increase will have on your budget, your employees, and your taxpayers. Even with the 19.6% levy cap and 17.6% appropriation cap exemptions for the increased cost to health benefits, municipalities must fund this increase. The New Jersey League of Municipalities, the New Jersey Conference of Mayors, the New Jersey Urban Mayors Association, and the New Jersey Association of Counties continue to work with other interested stakeholders, including the major public sector union representatives, to address the unsustainable 22% increase in 2023 for the State Health Benefits Plan (SHBP) municipalities. It is critical for Mayors and elected officials in municipalities that participate in the SHBP to directly reach out to the Governor’s office and reiterate to your Legislators the need for an acceptable resolution of these newly imposed costs on municipal and county governments, our public employees, and taxpayers. If you have already reached out, please do so again–we need their attention and action.
Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120. Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
Governor Signs Bill Allowing Use of Third-Party Private Construction Inspectors On Thursday, Governor Murphy signed A-573, which makes several changes to the Uniform Construction Code Act (UCC). The bill codifies the three-day construction inspection turnaround and allows for developers to contract with private on-site inspection agencies if local officials cannot complete the inspection within the three-day period. A-573 also provides municipalities with several avenues meant to improve the ability to conduct inspections in a timely manner, including a more streamlined bidding process to contract with private inspectors and eased access to enter into shared service agreements. The bill also allows inspections to be scheduled outside of normal business hours if both the enforcing agency and developer agree.
While the League has a favorable view of the additional tools A-573 provides to municipalities to complete timely inspections, we remained opposed to the bill because of the issues presented by opening up inspection to private third-party agencies. It is our belief the quality and integrity of inspections are best maintained when kept within the neutral auspices of the municipal government rather than performed by profit-seeking third parties. Unfortunately, these concerns remained unaddressed. Sections 1 through 3 of A-573 dealing with a developer’s ability to have inspections done by a third-party agency become effective immediately upon the adoption of rules and regulations by the Department of Community Affairs. Section 4 of A-573 which deals with a municipality’s ability to enter into a shared service agreement and contract with a third-party took effect immediately. We suggest you review this new law with your municipal construction officials and attorney for additional information. Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
Governor to Deliver State of the State Address January 10 Next Tuesday, January 10, at 2 p.m., Governor Phil Murphy will deliver the State of the State Address in the Assembly Chambers before a joint session of the Legislature to outline priorities for 2023. The address will be livestreamed on the Governor’s YouTube channel. A date for the Annual Budget Address, which traditionally occurs in February or March, has not been announced. Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
Deadline for the ANCHOR Program is Fast Approaching The deadline for the ANCHOR program application is January 31. The state will begin paying ANCHOR benefits in late spring of 2023 in the form of a direct deposit or check, not as credits to property tax bills. Applicants are eligible if they meet the following criteria: Homeowners:
The applicant was a New Jersey resident. The applicant owned and occupied a home in New Jersey that was their principal residence on October 1, 2019. The applicant’s 2019 property taxes were paid on that home. The applicant’s 2019 New Jersey gross income was $250,000 or less.
Tenants:
The applicant was a New Jersey resident. The applicant’s 2019 New Jersey gross income was not more than $150,000. The applicant rented and occupied a residence in New Jersey that was their principal residence (main home) on October 1, 2019. The applicant’s name was on the lease or rental agreement. The applicant paid rent. The applicant’s unit had its own separate kitchen and bath facilities if the building consisted of multiple units. The rental property was subject to local property taxes (see Qualified and Non-Qualified Rental Properties).
To learn more about the ANCHOR program, please visit the Division of Taxation’s ANCHOR programs website. Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
State Extends Horizon Blue Cross Blue Shield Insurance New Jersey extended its health benefits contract with Horizon Blue Cross Blue Shield for another year, media outlets report. This occurred after state officials alleged the health insurer failed to meet the terms of the deal. The state will pay lower fees due to a reduction in the scope of some services Horizon was originally hired to provide to state employees. Labor members of the State Health Benefits Commission Plan Design Committee asked about savings from the navigation program that was expected to produce significant savings to the insured, including municipal employees. Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
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Federal
Opportunity to Comment on Property Assessed Clean Energy (PACE) Program The League’s federal partner, the National League of Cities (NLC), alerted us to an opportunity for municipalities to comment on the Property Assessed Clean Energy (PACE) Programs. The Property Assessed Clean Energy (PACE) model is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property. PACE programs allow property owners to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through voluntary assessments. The unique characteristic of PACE assessments is that they are attached to the property rather than an individual. In 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act banking reform bill that recognizes PACE as a tax assessment and directs the Consumer Financial Protection Bureau (CFPB) to develop rules in consultation with state and local governments that ensure consumers have the ability to pay their residential PACE financing obligations. CFPB previously started this rulemaking, then paused–and now they are starting up again with consultations with city and county officials. A call for municipal and county officials will take place on Tuesday, Jan. 31, at 4 p.m. eastern and RSVPs should be sent to IGA@cfpb.gov by Monday, Jan. 23, and include a primary point of contact, as well as the name, title, and email address for each attendee. Please cc NLC’s Carolyn Brandt on the email at Berndt@nlc.org. Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
FY2023 Federal Omnibus Budget In the final week of December, the House and Senate passed, and President Biden signed a $1.7 trillion FY2023 federal budget through September 30, 2023. For provisions of state and local interest, please read the League’s two blog posts, the first focusing on New Jersey-specific provisions; transportation and infrastructure; healthcare; and environment. The second blog post focuses on housing, community, and economic development; science and innovation; public safety and justice; finance services and general government; veterans; and community-directed spending. Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
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Post Conference Your CEU certificates from the 2022 League Conference are available and can be accessed online through May 1, 2023. Please access instructions and the CEU certificate site via the 107th Annual League Conference page. In addition, the 2021 tracking system has closed. Contact: Danielle Holland-Htut, Continuing Education/Special Programs Manager, dholland@njlm.org, 609-695-3481, Ext. 118.
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Also of Interest
Show Off Your City Contest Deadline Feb. 3 The Annual Show Off Your City Contest is accepting entries through February 3. Municipalities are invited to send us photos of their tourist attractions, downtown areas, economic development initiatives, parks, city halls, community groups, special moments, and new projects. Entries will be posted on the League’s Facebook page, website, and some will be featured in the April issue of NJ Municipalities magazine, and possibly other issues. The winner will also receive a free League publication of their choice! Photos can be submitted via the form on the league website, email to aspiezio@njlm.org, or mailed on a flash drive to 222 West State Street, Trenton, NJ 08608. For full details, visit the Show Off Your City Contest webpage. Contact: Amy Spiezio, Ext.123, or aspiezio@njlm.org
6th Annual Watershed Conference The Watershed Conference will be hybrid and held on February 10 and 17 from 10 a.m. – 5 p.m. As always, it will be an opportunity for stakeholders to learn, brainstorm, discuss, and plan solutions for the problems faced by NJ’s watersheds such as stormwater pollution, flooding, climate change, and more. This year, the conference will focus on municipal stormwater and new MS4 requirements for municipalities in NJ. The conference will have sessions relevant to a wide variety of relevant stakeholders and will be organized into 3 tracks (Implementers, Policy-Makers, and Community Members) based on different audiences. Prospective attendees can access more information about MS4 and details about the conference on the Watershed Conference page Registration will be open until February 6, 2023.
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