News Flash Home
The original item was published from 5/8/2020 2:59:29 PM to 5/9/2021 12:00:04 AM.

News Flash

Home

Posted on: May 8, 2020

[ARCHIVED] Urging Support for A-3971/S-2475 Permissive COVID-19 Reflief Bills

Yesterday the Assembly Commerce and Economic Development Committee released A-3971 which authorizes the issuance of “coronavirus relief bonds” by municipalities and counties. Specifically, A-3971 permits municipalities to issue bonds for the loss of revenue and/or unanticipated expenses directly attributable to the COVID-19 pandemic with appropriate safeguards and Local Finance Board oversight. This legislation is sponsored by Assemblyman Dan Benson and Assembly Speaker Craig Coughlin. Senators Troy Singleton and Vin Gopal introduced the Senate companion, S-2475, yesterday.

The League strongly supports the swift passage of the bill. We are currently living in unprecedented times of a global pandemic. Since mid-March, more than 1 million New Jersey residents have filed unemployment claims. The current public health emergency led to the shuttering of businesses, construction, courts, and schools. As a result, local governments have experienced a record decline in revenue from permitting fees, licensing fees, parking revenue, and court fines. At the same time, local governments also face income losses due to declining returns on investments. Further, there is the uncertainty of property tax collection and state aid revenues. Unlike previous emergencies, COVID-19 is a major revenue loss event, in addition to being an expense-related event.

A one-size-fits-all solution is not the best approach toward addressing revenue shortfalls and increased expenses. Municipal budgets continue to be lean and the current options available to municipalities may work for some municipalities but for most the pandemic will create long-term financial problems. Without this legislation to address the revenue shortfall, some municipalities would be required to take extreme measures that would gut local government and eliminate critical public service. Local governments need the flexibility that A-3971 provides to limit the impact on property taxpayers.

Time is of the essence and we would like to see further action next week. Please contact your State Senator and Assembly representatives urging them to support this much-needed tool for local governments in an unprecedented time and a loss of revenue that will not be recaptured not for several years, if ever.

Contacts: 

•    Michael F. Cerra, Assistant Executive Director, mcerra@njlm.org, 609-695-3481 x120.

•    Lori Buckelew, Senior Legislative Analyst, lbuckelew@njlm.org, 609-695-3481 x112.


Facebook Twitter Email

Other News in Home

FY2023 Federal Omnibus Budget Passed

Posted on: January 9, 2023

SHBP Update: No Relief In New Year

Posted on: December 30, 2022

Federal Budget Update

Posted on: December 23, 2022

LEAP Grants Now Available

Posted on: December 23, 2022

Federal Budget Update

Posted on: December 19, 2022

State Health Benefits Update

Posted on: December 5, 2022

Revised Model Procurement Forms

Posted on: December 5, 2022

SHBP Rate Increase Adopted

Posted on: September 27, 2022

Blog Post: Available Federal Grants

Posted on: September 27, 2022

President Signs CHIPS and Science Act

Posted on: August 12, 2022

Ground Broken on Portal North Bridge

Posted on: August 8, 2022

Energy Tax Receipt Funding Update

Posted on: June 29, 2022

FY2023 Budget Update

Posted on: June 29, 2022

Second Tranche of ARP SLRF Expected

Posted on: June 13, 2022

988 Suicide & Crisi Lifeline

Posted on: May 27, 2022

ARP & BIL Presentation

Posted on: May 13, 2022

FY 2023 Budget Hearings Continue

Posted on: April 22, 2022

Scam Targeting ARPA SLFRF NEUs

Posted on: April 13, 2022

Cybersecurity Update

Posted on: March 22, 2022

Week of March 8: COVID Update

Posted on: March 15, 2021

Legislative Preview: Week of March 8

Posted on: March 9, 2021

FY 2021 State Budget-Municipal Interest

Posted on: February 24, 2021