New JerseyA5240220th Legislature (2024-2025)HouseWALLET

Concerns local unit budget processes and related operations.

Sponsored By: Kevin P. Egan (Democratic), Vin Gopal (Democratic), Alexander Schnall (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 4 benefits, 4 costs, 6 mixed.

Local officials face personal daily penalties

Local governing-body members must comply with the state director's final orders. A member who willfully refuses or fails to comply owes $100 for each day after the final-action deadline. The director can collect this as the member's personal debt. The money goes to the State Treasury, not the local government.

Local officials risk five-year job bans

The state director can suspend or revoke tax collector, municipal clerk, and purchasing agent certificates after notice and a hearing opportunity. Grounds include dishonest practices, specified legal violations, or other good cause; tax collectors also face discipline for inability or inefficiency. Revocation removes the person from the role and bars service or applications for recertification for five years. The director can review clerks and tax collectors independently or at a town's request. The purchasing-agent discipline rules took effect December 23, 2025.

Shared services can end tenured jobs

Pilot towns can dismiss a tenured chief financial officer when needed to carry out a shared-service agreement. The dismissal counts as an economy or efficiency measure and bypasses otherwise applicable removal requirements. The town must give the officer the shared-service agreement and a letter explaining why the position is eliminated.

Calendar-year towns use estimated tax bills

Beginning December 23, 2025, calendar-year towns must send estimated property tax bills when bills cannot be delivered by June 14. Estimated bills must go out by June 30, followed by reconciled bills by September 30. Uncertified county and taxing-district levies generally use estimates between 95% and 105% of the prior year's levy. Interest on third and fourth installments starts no earlier than 25 days after delivery or the later applicable interest-free date. The state director can approve another calculation method or extend the June 30 mailing deadline for good cause.

State-year towns follow delayed tax-bill rules

Beginning December 23, 2025, State-fiscal-year towns use estimated and reconciled installments when bills cannot arrive by June 14 or December 1. The first two installment deadlines are December 31 and March 31; the third and fourth are June 30 and September 30. For third-installment estimates, uncertified county and taxing-district levies generally range from 95% to 105% of the prior fiscal year's levy. Interest-free periods last until the later applicable statutory date, additional grace period, or 25 days after delivery. The state director can approve another calculation method or extend first- or third-installment estimated-bill deadlines for good cause.

Local governments face firm budget deadlines

Calendar-year municipal mayors or managers must send recommended budgets, explanations, and detailed revenue and spending analyses to councils by February 28. Counties and calendar-year towns must introduce and approve budgets by March 31; State-fiscal-year towns have until August 10. Final adoption deadlines are April 30 for counties and calendar-year towns, and September 20 for State-fiscal-year towns. These introduction and adoption deadlines allow action at the next regular governing-body meeting. When the director certifies approval after the advertised hearing date, adoption can occur within 10 days after certification.

Residents get clearer local budgets online

Local governments must post a user-friendly, plain-language summary of their adopted budget online. The current budget and the previous three adopted budgets must be available for public review. The current budget must stay online throughout its budget year. Governments without websites must use the New Jersey Department of Community Affairs website.

Local governments face interim spending limits

Before budget adoption, temporary spending approvals are capped at 35% of prior-year appropriations for counties and calendar-year towns. State-fiscal-year towns have a 26.25% cap; calculations exclude interest, debt repayment, capital improvement funds, and public assistance. Interest and debt payments due near year-end remain payable as exceptions. In mayor-council towns, reducing a proposed budget item takes a majority vote, while increasing one takes two-thirds. Where practical, municipal councils must create budget work plans, quarterly spending allotments, and reports on costs per unit of service.

Purchasing agents face fees and qualifications

Local purchasing agents generally need certification based on citizenship, character, education, experience, training, and a state exam. Applicants pay $150 to apply and $25 for the certificate, totaling $175. Some certified finance officers can skip specified training; certain previously certified agents and qualifying school business administrators have exemptions. Certificates renew every three years, with continuing education and renewal fees; green-purchasing training is generally required within four years of course establishment. Agents can be employees, contractors, or shared staff. Beginning December 23, 2025, an uncertified replacement can serve when an appointed agent stops performing duties. Temporary service lasts one year, with one director-approved renewal and a two-consecutive-year limit.

Local finance staffing gains limited flexibility

Counties and towns must address chief financial officer vacancies within 90 days through certified hires, permitted temporary appointments, or shared services. Extensions require good cause, good-faith hiring efforts, and inability to fill the job; towns must request them in writing. Counties can use uncertified temporary officers only after a certified officer's departure, for one year plus one director-approved renewal. Towns can hire a private entity after good-faith efforts to hire a certified person, with director approval. Private entities can serve no more than two consecutive one-year terms; certified staff must supervise and sign financial-officer documents. Shared-service agreements must follow applicable rules, including extra rules for pilot towns. Willful municipal noncompliance after an order and deadline can bring governing-body members personal penalties of $100 daily.

Local financial reports face tighter oversight

Local governments and authorities must finish annual audits by the last day of the eighth month after fiscal year-end. Local governments must investigate and correct findings, and can seek extensions for good cause. Governments must use a New Jersey registered municipal accountant or qualified state staff; authorities can also use a certified public accountant. Authorities must file audits and send certified copies to each creating government's governing body and the director within five days. Finance chiefs must file verified financial statements by March 10 for calendar-year units or August 10 for State-fiscal-year towns. Responsible officials who willfully ignore a director's audit or filing order face personal penalties of $100 daily after the final-action deadline.

Towns can share certified tax collectors

Towns must appoint a certified tax collector or arrange shared services within 90 days of a vacancy. Shared services must follow applicable rules, including extra rules for pilot towns. One person can serve as tax collector and treasurer or clerk; towns can set hours in line with pay. The director can extend the deadline after a written request showing good cause, good-faith hiring efforts, and inability to fill it. Willful noncompliance after a director's order and final-action deadline can bring a personal $100 daily penalty.

Towns face public works staffing rules

Towns must provide a certified principal public works manager and can share one through a shared-service agreement. Vacancies must be filled within 90 days with a certified manager or authorized interim appointee. Uncertified interim managers can serve one year plus one additional year, with a two-year total limit in a town. The director can extend vacancy deadlines for good cause after good-faith hiring efforts fail. Towns with little or no public works activity can apply for five-year exemptions, then reapply or select a manager. Willful noncompliance after a director's order and final-action deadline can bring a personal $100 daily penalty.

Towns must fill clerk vacancies promptly

Towns must address clerk vacancies within 90 days by appointing a registered clerk or sharing one with another town. An uncertified acting clerk is allowed only after a registered clerk leaves the job. Acting clerks can serve one year, with up to two additional one-year terms approved by the state director. Total acting service cannot exceed three consecutive years. The director can extend the 90-day deadline for good cause after good-faith efforts fail to fill the job.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 108 • No: 4

Senate vote • 12/22/2025

3RDG FINAL PASSAGE

Yes: 37 • No: 0

House vote • 12/8/2025