Bill Text: NJ S3118 | 2010-2011 | Regular Session | Introduced
Bill Title: Authorizes State oversight of municipalities in the Transitional Aid to Localities Program; appropriates $140,500,000 to DCA for Transitional Aid to Localities and administrative costs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-12-15 - Substituted by A4373 [S3118 Detail]
Download: New_Jersey-2010-S3118-Introduced.html
Sponsored by:
Senator DONALD NORCROSS
District 5 (Camden and Gloucester)
Senator PAUL A. SARLO
District 36 (Bergen, Essex and Passaic)
SYNOPSIS
Authorities State oversight of municipalities in the Transitional Aid to Localities Program; appropriates $140,500,000 to DCA for Transitional Aid to Localities and administrative costs.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing State oversight for certain municipalities experiencing fiscal distress, supplementing Title 52 of the Revised Statutes, and making appropriations.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Director of the Division of Local Government Services in the Department of Community Affairs shall have the authority to determine conditions, requirements, orders, and oversight for the receipt of any amount of grants, loans, or any combination thereof, provided to any municipality through the Transitional Aid to Localities program or any successor discretionary aid programs for municipalities in fiscal distress. Conditions, requirements, or orders deemed necessary by the director may include, but not be limited to, the implementation of government, administrative, and operational efficiency and oversight measures necessary for the fiscal recovery of the municipality, including but not limited to requiring approval by the director of personnel actions, professional services and related contracts, payment in lieu of tax agreements, acceptance of grants from State, federal or other organizations, and the creation of new or expanded public services.
b. An additional amount not to exceed one percent of the amount appropriated in any State Fiscal Year beginning on or after July 1, 2012 for the Transitional Aid to Localities program or any successor discretionary aid programs for municipalities in fiscal distress shall be appropriated for administrative costs of that program, and for administrative costs associated with the oversight of any municipalities under State supervision pursuant to Article 4 of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-54 et seq.), subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
2. There is appropriated $139,000,000 from the General Fund to the Department of Community Affairs for Transitional Aid to Localities to be distributed to municipalities during the current State Fiscal Year, subject to the provisions of subsection a. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) and P.L.2011, c.85.
3. There is appropriated $1,500,000 from the General Fund to the Department of Community Affairs for administrative costs of the Transitional Aid to Localities program and for administrative costs associated with the oversight of any municipalities under State supervision pursuant to Article 4 of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-54 et seq.), subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
4. This act shall take effect immediately.
STATEMENT
This legislation would supplement current law to reflect identical language in the Fiscal Year 2012 Appropriations Act by providing the State with the authority to implement certain oversight measures in municipalities that have received additional State financial assistance through the Transitional Aid to Localities program. Under this bill, the Director of the Division of Local Government Services in the Department of Community Affairs would be permitted to condition the receipt of Transitional Aid on any requirements, orders, and oversight as he deems necessary for the fiscal recovery of the municipality.
The bill also requires an additional amount, not to exceed one percent of the State appropriations for the Transitional Aid program or any successor discretionary aid programs for municipalities in fiscal distress, to be appropriated and allocated for administrative costs of that program and for State supervision of municipalities that are in, or in danger of falling into, unsound financial condition.
This bill also appropriates a total $140.5 million from the State General Fund to the Department of Community Affairs for the Transitional Aid to Localities program. $139 million would be available for distribution to eligible municipalities in the current State fiscal year. An additional $1.5 million would be available to pay for administrative costs associated with the Transitional Aid to Localities program and with the oversight of any municipalities that are under State supervision pursuant to Article 4 of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-54 et seq.).
Transitional Aid to Localities is the State's only funded discretionary municipal financial assistance program, and is only available to municipalities anticipating difficulties making payments toward nondiscretionary or critical obligations including, but not limited to, debt service, contractual obligations, and public safety payroll. Applying for aid under this program is a declaration that the municipality is not capable of managing its finances without special State assistance and intervention. Transitional Aid to Localities replaced three existing municipal aid programs: Extraordinary Aid, Special Municipal Aid, and Trenton Capital City Aid.
