The State's FY 2005 budget will be finalized by the end of this month. Let's review the League's FY 2005 municipal property tax relief funding requests to see where we stand.

We asked the Legislature to end the pension offset. Consolidated Municipal Property Tax Relief Aid (CMPTRA) fund­ing is much lower than it should be. This crucial property tax relief funding program has been diminished in each of the last 10 years by the, so-called, "pension offset." Through the "offset," the State originally denied local property taxpayers the benefits of reduced pension liabilities. And while the pension savings of the 1990s have long since disappeared, the reduced relief funding, originally justified by those sav­ings, remains in place. We do not expect to see the offset eliminated in the state's FY 2005 Appropriations Act. Next year, we'll try again.

Second, we hoped to see the Legislature restore the $4 million cut from the Extraordinary Aid program and add the $4 million cut from the Special Municipal Aid program to Extraordinary Aid. There, that extra $8 million could help numerous municipalities deal with unanticipated costs caused by successful tax appeals, severe winter weather, health insurance premium escalations and increased Homeland Security obligations. We do not expect to see this increase in the state's FY 2005 Appropriations Act. Next year, we'll try again.

But this initiative proves that when the Governor came to our Mayors' Property Tax Summit, he not only came to speak. He also came to lis­ten. He heard your arguments for direct municipal property tax relief funding. And he has responded

Third, we also call on the Legislature to double the new Hero Grant program to $10 million. With so many new responsibilities since the September 11 attacks, with the rising costs of meeting our traditional responsibilities, with property tax relief funding for municipal government level for so many years, and with just a one percent increase in support from the state this year, any local budget maker who can keep a lid on property taxes deserves to be called - if not a hero, at least a champion.

On this, we didn't get the extra funding we asked for. But, if the Legislature accepts the Governor's latest recommendation, we will get better. On May 18, the Governor confirmed that he will ask for a new distribution of $32 million, for municipal Hometown Security purposes. Details on funding formulas will be available after July 1.

We need to thank Governor McGreevey for this funding. It was not included in his original February budget requests or in his April 29 "FAIR" plan announcement to both Houses of the Legislature. But this initiative proves that when the Governor came to our Mayors' Property Tax Summit, he not only came to speak. He also came to listen. He heard your arguments for direct municipal property tax relief funding. And he has responded.

FROM 407 WEST STATE STREET.....   Our Checklist for Legislative Action William G. Dressel, Jr. Executive Director New Jersey League of Municipalities The State's FY 2005 budget will be finalized by the end of this month. Let's review the League's FY 2005 municipal property tax relief funding requests to see where we stand. We asked the Legislature to end the pension offset. Consolidated Municipal Property Tax Relief Aid (CMPTRA) fund­ing is much lower than it should be. This crucial property tax relief funding program has been diminished in each of the last 10 years by the, so-called, "pension offset." Through the "offset," the State originally denied local property taxpayers the benefits of reduced pension liabilities. And while the pension savings of the 1990s have long since disappeared, the reduced relief funding, originally justified by those sav­ings, remains in place. We do not expect to see the offset eliminated in the state's FY 2005 Appropriations Act. Next year, we'll try again. Second, we hoped to see the Legislature restore the $4 million cut from the Extraordinary Aid program and add the $4 million cut from the Special Municipal Aid program to Extraordinary Aid. There, that extra $8 million could help numerous municipalities deal with unanticipated costs caused by successful tax appeals, severe winter weather, health insurance premium escalations and increased Homeland Security obligations. We do not expect to see this increase in the state's FY 2005 Appropriations Act. Next year, we'll try again. But this initiative proves that when the Governor came to our Mayors' Property Tax Summit, he not only came to speak. He also came to lis­ten. He heard your arguments for direct municipal property tax relief funding. And he has responded   Third, we also call on the Legislature to double the new Hero Grant program to $10 million. With so many new responsibilities since the September 11 attacks, with the rising costs of meeting our traditional responsibilities, with property tax relief funding for municipal government level for so many years, and with just a one percent increase in support from the state this year, any local budget maker who can keep a lid on property taxes deserves to be called - if not a hero, at least a champion. On this, we didn't get the extra funding we asked for. But, if the Legislature accepts the Governor's latest recommendation, we will get better. On May 18, the Governor confirmed that he will ask for a new distribution of $32 million, for municipal Hometown Security purposes. Details on funding formulas will be available after July 1. We need to thank Governor McGreevey for this funding. It was not included in his original February budget requests or in his April 29 "FAIR" plan announcement to both Houses of the Legislature. But this initiative proves that when the Governor came to our Mayors' Property Tax Summit, he not only came to speak. He also came to listen. He heard your arguments for direct municipal property tax relief funding. And he has responded.       Editorial from New Jersey Municipalities, Volume 81, Number 6, June 2004