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“We’ve shown that our approach of holding towns and cities accountable for the transitional aid they receive and requiring them to implement fiscal and management reforms is working, as evidenced by the fact that fewer municipalities need assistance this year than last year,” the governor said Friday.
“I encourage the Legislature to quickly approve my proposal to restore funding for transitional aid with state oversight so we can continue to assist thesemunicipalities with responsible spending and budgeting practices.”
All of the five recipients operate on fiscal year budgets and are in dire need of additional funding.
They have agreed to each sign a Memorandum of Understanding (MOU) allowing State oversight, stiffer reporting requirements and fiscal and management reforms in exchange for the aid.
Once the MOUs are signed, the Department of Community Affairs (DCA) will allocate 75 percent of a municipality’s awarded funds. The balance will be payable later in the fiscal year, provided the requirements of the MOU are complied with and implemented.
“State oversight is viewed positively by key New Jersey stakeholders – especially the taxpayers – because the Christie Administration has demonstrated it can help communities reduce costs, improve operations and keep everyone accountable,” said DCA Commissioner Lori Grifa.
The MOU requires aid recipients to obtain Division of Local Government Services approval before hiring personnel or outside consultants; to freeze non-contractual salaries and promotions; to restrict travel expenditures; and to adopt a strong pay-to-play ordinance. Aid recipients are also required to meet with Division staff at least four times a year to review their budget and fiscal progress.
Christie reduced municipal aid from $149 million to $10 million in his $29.8 billion state budget in June, raising a hue and cry from the cities. Union City requested $14 million, a million more than it received last year. It got a million less.
To see who else got how much: Transitional Aid grants
For comparison: Last Year’s List
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