Flat State Aid Hurts Galloway

Each year, during the budget season, “state aid to municipalities” is a primary focus of local officials. The message continues, that the State is “giving” aid to the local municipalities.

Most of these funds are revenues designed to provide property tax relief. This funding originated through local taxes collected to provide money for municipal programs and services.

One such program is the Energy Tax Receipts Property Tax Relief program.  

Governor Christie’s 2014 proposed budget continues the trend of no increase in aid to NJ municipalities. Flat state aid sounds good, but it amounts to a decrease.

With rising costs, the job of local officials is not getting any easier. The fact is that more taxpayer money goes to Trenton and less returns. 

Even though Christie and lawmakers have enacted the 2 percent cap on municipalities, state spending went up by nearly 7 percent in the last state budget and would go up again by nearly 4 percent for the 2014 proposed budget.

Meanwhile, local municipalities have been forced to reduce services to residents. We need property tax relief, not just aid. Withholding energy tax money and the unfunded State mandates continue to be a burden on property taxpayers.

One way to provide immediate property tax relief would be for the state to return more of the money collected in lieu of property taxes from the utility and energy companies, rather than diverting it to the State’s general fund.

Local elected leaders, from all municipalities, need to join together to demand the return of the taxpayers' money.