SENATE, No. 1819
STATE OF NEW JERSEY
INTRODUCED JANUARY 27, 1997
By Senator CIESLA
An Act concerning State aid to certain shore municipalities and supplementing chapter 27D of Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The act shall be known and may be cited as the "Shore Aid Act."
2. The Legislature finds and declares that it is in the interest of the residents of this State to maintain, support, foster, and promote the financial foundation and stability of certain less affluent shore municipalities in the State by providing State aid to them. The populations of these municipalities swell during the summer tourism season and in the off-season face an inflow of welfare recipients. Such extreme fluctuations in population result in unpredictable system and service demands being placed on the municipal budgets of these shore municipalities. Enormous strains are placed on police, fire, emergency services, health services, transportation systems, infrastructure, and sanitation facilities that cannot be adequately alleviated without excessively taxing existing property owners in the less affluent shore municipalities. In order to maintain core public safety systems and services at acceptable levels throughout the year in these less affluent shore municipalities it is a proper State purpose to provide State aid to such municipalities. Earmarking this State aid for core public safety functions will assure the health, welfare and safety of regular residents and summer shore tourists in these municipalities.
3. As used in this act:
a. "Equalized municipal tax rate" means the 1996 municipal purpose tax levy divided by the 1996 net valuation on which county taxes are apportioned as reported in the county table of aggregates prepared pursuant to R.S.54:4-52.
b. "Qualifying shore municipality" means a municipality:
(1) that borders on the Atlantic Ocean;
(2) that had a 1989 per capita income of less than $20,000; and
(3) that had a 1996 equalized municipal tax rate of .0030 or greater.
c. "State equalized municipal tax rate" means the State total of municipal purpose tax levies divided by the State total net valuation on which county taxes are apportioned as reported in the county table of aggregates prepared pursuant to R.S.54:4-52.
4. A qualifying shore municipality's share of the funds allocated as State aid pursuant to this act shall be determined by the following formula:
SF = (1,500,000/IR) x PR x TRR
Where:
SF is the amount of the total State aid allocated to each qualifying shore municipality pursuant to this act, which amount shall not exceed $200,000;
IR is the ratio of a qualifying shore municipality's 1989 per capita income to the State's 1989 per capita income;
PR is the ratio of a qualified shore municipality's 1990 census year round population to the 1990 census year round population sum of all qualified shore municipalities multiplied by the number of qualified shore municipalities;
TRR is the ratio of a qualifying shore municipality's 1996 equalized municipal tax rate to the State's 1996 average equalized municipal tax rate.
5. The State Treasurer shall annually, on or before June 30, make a determination of the qualifying shore municipalities and determine the amount of funds to be apportioned to each qualifying shore municipality for the next succeeding local budget year. The State Treasurer shall thereupon notify the Director of the Division of Local Government Services in the Department of Community Affairs and the governing body of each qualifying shore municipality of the amount so determined.
6. The State Treasurer, upon certification by the Director of the Division of Budget and Accounting in the Department of the Treasury that there are sufficient monies in the General Fund for the purposes of this act, shall annually, on or before July 15, allocate to each qualifying shore municipality the amount determined.
7. The funds to be received by a qualifying shore municipality pursuant to this act shall be appropriated by the governing body of the shore municipalities in compliance with the "Local Budget Law," N.J.S.40A:4-1 et seq. Any shore municipality qualifying for State aid under the provisions of this act may on or after July 1, 1997 anticipate in its budget receipt of the amount allocated by the State Treasurer pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) and may file such amendments or corrections in its budget as may be required to properly reflect the amount. All State aid revenues obtained under the provisions of this act shall be applied by the recipient municipality to core public safety functions.
8. In State fiscal year 1998, the Legislature shall appropriate the sum of $4,300,000 for the purposes of this act. Thereafter, the Legislature shall annually appropriate the amount determined by the State Treasurer.
9. This act shall take effect immediately.
STATEMENT
This bill, entitled the "Shore Aid Act," would establish a State aid program for less affluent shore municipalities which experience dramatic temporary population growth during the summer tourism season and in the off-season face a large inflow of welfare recipients.
Specifically, these municipalities are compelled to bear the additional costs of added police, fire, emergency services, health services, transportation systems, infrastructure, and sanitation facilities that cannot be adequately addressed in their municipal budgets without excessively taxing existing property owners. In order to maintain these systems and services at acceptable levels and to equitably distribute the costs of providing services, it is necessary to provide State aid to such shore municipalities.
To qualify for State aid under this bill, a shore municipality must border on the Atlantic Ocean, have a 1989 per capita income of less than $20,000; and have a 1996 equalized municipal tax rate of .0030 or greater.
The bill requires the Legislature to appropriate $4.3 million for this program. This State aid program would employ a formula that allocates this State aid among qualified shore municipalities based on population driven demands, the ability of their residents to pay property taxes and the shore municipality's current tax rate dedicated to municipal services.
Prior to June 30 annually, the State Treasurer would determine qualifying shore municipalities and the amount of funds to be apportioned to each qualifying shore municipality for the next succeeding local budget year. The State Treasurer would then notify the Director of the Division of Local Government Services in the Department of Community Affairs and the governing body of the qualifying shore municipalities of the amount so determined.
The State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting, annually, on or before July 15 is directed, to pay to each qualifying shore municipality the amount determined.
The shore municipalities would be required to apply all State aid revenues obtained under the provisions of this act to core public safety functions.
Provides State aid to less affluent shore municipalities.