SENATE, No. 926

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 14, 1996

 

 

By Senator LIPMAN

 

 

An Act concerning local budget disputes, amending N.J.S.40A:4-9 and N.J.S.40A:4-79 and supplementing chapter 4 of Title 40A of the New Jersey Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. N.J.S.40A:4-9 is amended to read as follows:

    40A:4-9. a. Amendments to budgets required by the director , or in accordance with the resolution of a budget dispute arrived at by the Local Budget Dispute Resolution Board pursuant to section 4 of P.L.     , c. (C. )(pending before the Legislature as this bill), may be made prior to the time of holding the public hearing on the budget, without public advertisement.

    b.    The governing body may amend the budget during or after the public hearing. All amendments shall be read in full and shall be forthwith submitted to the director.

    c.    Except as provided in subsection e. of this section, no amendment by the governing body shall be effective until taxpayers and all persons having an interest therein shall have been granted a public hearing thereon, if such amendment shall:

    1.    add a new item of appropriation in an amount in excess of 1% of the total amount of appropriations as stated in the approved budget, or

    2.    increase or decrease any item of appropriation by more than 10%, or

    3.    increase the amount to be raised by taxes by more than 5%, unless the same is made to include an emergency temporary appropriation only.

    Notice of hearing on any amendment shall be advertised at least three days before the date set therefor. Any such amendment must be published in full or by a summary pursuant to subsection d. of this section in the same manner as an original publication and must be read in full at the hearing and before adoption.

    d.    The governing body of a municipality or county may satisfy the publication requirements for an amendment by publishing a summary stating the main provisions of the amendment and the location, telephone number and office hours of the principal municipal or county building where copies of the amendment are available and the name of the person or office to be contacted if a person wants to receive a copy of the amendment by mail. The summary shall be published in the manner provided in subsection b. of section 12 of P.L.1995, c.259 (C.40A:4-6.1).

    e.    Amendments to budgets required by the director after certification of State aid amounts, for the purpose of appropriating State aid revenue to be received by the municipality in the local budget year that may have the effect of reducing the amount required to be raised by taxation for local purposes, may be made without public advertisement or public hearing.

(cf: P.L.1995, c.259, s.10)

 

    2. N.J.S.40A:4-79 is amended to read as follows:

    40A:4-79. [Immediately after the making of his examination of the budget] Not less than 30 days after the governing body files three certified copies of the budget with the director, the director shall certify the results of his determination to the governing body. If the director does not certify the results of his determination to the governing body within the time required by this section, the budget shall be deemed approved by the director as it was filed with the director, and the director shall forthwith send a certification of approval of the budget to the governing body. A governing body shall not finally adopt a budget until a certification of approval by the director has been received.

(cf: N.J.S.40A:4-79)

 

    3. (New section) a. There is created in but not of the Department of Community Affairs the Local Budget Dispute Resolution Board, hereinafter referred to as "the board."

    b. The board shall have five members as follows: one member appointed by the Governor; one member appointed by the Governor on the recommendation of the New Jersey Association of Counties; one member appointed by the Governor on the recommendation of the New Jersey State League of Municipalities; one member appointed by the Governor on the recommendation of the New Jersey State Chamber of Commerce; and one member appointed by the Governor on the recommendation of the Government Finance Officers Association of New Jersey. Members shall serve for two years and until their successors are appointed. Members may succeed themselves. Vacancies in the membership of the board shall be filled in the same manner as the original appointments are made.

    c. The board shall select a chairperson from among its members.

    d. The board shall meet at the call of the chairperson at a time and place selected by the chairperson. The chairperson shall convene the board within one week of submission by a local unit of a budget dispute pursuant to section 4 of P.L. ...., c. .... (C. ....) (pending before the Legislature as this bill).

 

    4. (New section) If a local unit disputes the determination certified by the director after examining the budget, the governing body may submit the dispute to the Budget Dispute Resolution Board established pursuant to section 3 of P.L. ...., c. .... (C. ....) (pending before the Legislature as this bill.) The governing body also shall submit to the board the budget that it filed with the director, the director's statement of reasons for disapproving the budget and instructions for correcting the budget, and the governing body's statement of the budget issues that are in dispute. The board shall make every effort to resolve the dispute between the governing body and the director. If the dispute is not resolved to the satisfaction of the director and the governing body by the 30th day after submission of the dispute to the board, the budget shall be deemed approved by the director as it was filed with the director, and the director shall certify his approval of the budget to the governing body. If the dispute is resolved to the satisfaction of the director and the governing body by the 30th day after submission of the dispute to the board, the governing body shall amend the budget in accordance with the resolution arrived at by the board, and the director shall certify his approval of the amended budget to the governing body.

 

    5. This act shall take effect on the January 1 next following enactment.

 

 

STATEMENT

 

    This bill requires that the Director of the Division of Local Government Services in the Department of Community Affairs must certify his approval or disapproval of county and municipal budgets not less than 30 days after the governing body files three certified copies of the budget with the director. If the director does not meet the 30-day time limit, the budget is deemed to be approved, and the director is required to certify his approval to the governing body.

    The bill also establishes the Local Budget Dispute Resolution Board. If a county or municipality disputes the determination of the director of the Division of Local Government Services regarding the county or municipal budget, the county or municipality may submit the dispute to the board. The board is required to make every effort to resolve the dispute to the satisfaction of both the director and the county or municipality by the 30th day after the submission of the dispute to the board. If the board does not resolve the dispute by the 30th day, the budget is deemed to be approved and the director is required to certify his approval to the governing body.

 

 

 

Establishes time limit for certification of local unit budget by Director of Division of Local Government Services; establishes Local Budget Dispute Resolution Board.