SENATE, No. 2153
STATE OF NEW JERSEY
INTRODUCED JUNE 5, 1997
By Senators INVERSO, LITTELL, LaRossa, Kyrillos and Ewing
AN ACT appropriating funds for a supplemental distribution to municipalities during fiscal year 1997, amending and supplementing P.L.1996, c.42.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The following provision in section 1 of P.L.1996, c.42, the Fiscal Year 1997 annual appropriations act, is amended to read as follows:
STATE AID
82 DEPARTMENT OF TREASURY
70 Government Direction, Management and Control
75 State Subsidies and Financial Aid -- State Aid
[ Based upon the State's fiscal circumstances in May 1997, amounts collected in excess of $960,000,000 from Public Utility Gross Receipts and Franchise Taxes (combined) for fiscal year 1997 may be distributed to municipalities.]
(cf: P.L.1996, c.42, s.1)
2. In addition to the amounts appropriated under P.L.1996, c.42, there is appropriated out of the General Fund the following sum for the purpose specified in the following language:
STATE AID
82 DEPARTMENT OF TREASURY
70 Government Direction, Management and Control
75 State Subsidies and Financial Aid -- State Aid
There is appropriated the amount of $45,000,000 for supplementary payments to municipalities to be distributed on or before June 30, 1997 in proportion to the amount of the payment each municipality received during Fiscal Year 1997 from the $685,000,000 distribution from the proceeds of the public utilities franchise and gross receipts taxes. A supplementary payment shall be used solely and exclusively by each municipality for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes. If the amount of the supplementary payment exceeds the amount required to be raised by local property tax levy for municipal purposes, the balance of the supplementary payment shall be used to reduce the amount the municipality is required to raise for county purposes, notwithstanding the provisions of law to the contrary. Notwithstanding any provisions of the "Local Budget Law," N.J.S.40A:4-1 et seq., each municipality may anticipate the receipt of the amount of supplementary payment as shall be certified to it by the Director of the Division of Taxation in the Department of the Treasury and shall file any amendment or correction in its local budget as may be required to properly reflect that payment. The Director of the Division of Taxation shall provide the Director of the Division of Local Government Services in the Department of Community Affairs with a list of the certified supplementary payments for all affected municipalities. The Director of the Division of Local Government Services in the Department of Community Affairs shall certify that each municipality has complied with the requirements set forth herein concerning the use of the supplementary payments.
3. This act shall take effect immediately.
STATEMENT
This bill requires the State to make an additional distribution in fiscal year 1997 of $45,000,000 to municipalities as a supplemental distribution to the $685 million previously apportioned for distribution to municipalities during Fiscal Year 1997 from public utilities gross receipts and franchise taxes revenue.
The supplemental distribution is to be made in proportion to the municipal distributions made from the $685 million apportioned and paid earlier in the fiscal year. The supplementary distribution must be used by the recipient municipalities to reduce the local municipal property tax levy, which shall be reflected as a change in the municipal budget.
Makes FY97 supplemental appropriation of $45,000,000 for aid to municipalities as a supplemental distribution to the FY97 $685,000,000 distribution of public utilities gross receipts and franchise taxes.