Local Finance Notice 2025-18 was adopted at the December 10 Local Finance Meeting and published on December 12. Pursuant to N.J.S.A. 40A:4-5.1, the Local Finance Board approved at its meeting, a revised statutory budget deadline schedule for introduction, adoption, and Mayor/Council Faulkner Act and related budget transmissions.  

The revised CY2026 municipal budget deadlines are as follows: 

• Mayor/Council Faulkner Act(Executive) budget transmission to governing body extended from January 17, 2026, to February 27, 2026*.
• Submission to County and Municipal Annual Financial Statement (AFS) deadline extended from January 26, 2026, and February 10, 2026, to March 6, 2026. 
• Municipal introduction and approval of budget deadline extended from February 10, 2026, to March 31, 2026*. 
• County introduction and approval of budget deadline extended from January 26, 2026, to March 31, 2026*. 
• Municipal adoption deadline extended from March 20, 2026.to April30, 2026*. 
• County adoption deadline extended from February 28, 2026, to April 30, 2026*.

*Or the date of the next regularly scheduled meeting of the governing body.  

Notwithstanding the revised dates, a budget may be adopted any time within 10 days of receiving the Director’s certification of approval of the budget. Governing bodies may, by resolution, adopt no later than March 31, 2026, to increase temporary budget appropriations for the 2026 budget as may be necessary due to the extension. Municipalities are required to submit all budget-related processes and audit processes using the Financial Automation Submission Tracking (FAST) system.  

Counties and municipalities that fail to timely adopt their budgets risk imposition of statutory penalties, up to and including a $25-per day fine for governing body members who willfully fail or refuse to comply with a final order of the Director. See N.J.S.A. 40A:4-84. At its December 10 meeting, the Local Finance Board discussed the Assembly State and Local Government Committee’s recent approval of Bill A-5240 which makes various changes to local unit budget processes and related operations.  Among other proposed modifications to the statute, the bill proposes to increase the personal penalty imposed upon members of a local unit governing body for failure or refusal to comply with certain statutory responsibilities related to local unit budget processes and operation of a local unit from $25.00 to $100.00. A-5240 also establishes a 90-day deadline and clarifies procedures to fill vacancies in the roles of municipal chief financial officer, county chief financial officer, municipal tax collector, municipal clerk, and principal public works manager. The amendments would also permit the Director of the Division of Local Government Services (director) in the Department of Community Affairs to extend the 90-day deadline. S-3941, the Senate companion, was favorably reported by the Senate Community and Urban Affairs Committee on November 10. 

Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.