During Wednesday’s meeting, the Local Finance Board unanimously approved exceptions to the appropriation cap. Under N.J.S.A. 40A:4-45.3(d), the Local Finance Board has the authority to grant additional exceptions under extraordinary circumstances that result in an unanticipated increase in expenditures for a service essential to the health, safety, and welfare of the residents of New Jersey for only one budget year. Under this provision, the Local Finance Board granted appropriation cap relief for the 2024 budget year regarding the following budgetary items:
- Garbage collection and disposal, if it was not utilized as an exception last year,
- Recycling costs,
- Liability Insurance including Cybersecurity as well as Property and Casualty, and
- Workers’ Compensation Insurance
This appropriations cap relief applies to increases above the 3.5% increase of the previous year. The Division of Local Government Services (DLGS) will be issuing a Local Finance Notice shortly for municipalities to calculate these exemptions.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.