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July 11, 2013

Re:  Roseff v. Byram Township on Spending Cap Law

Dear Mayor,

The New Jersey Appellate Division issued an important ruling yesterday in the case of Roseff v. Byram Township.  This case dealt with the interplay between New Jersey’s Local Budget Law and the Faulkner Act. The League participated as amicus in this case. In siding with the municipality and the League, the court determined that when a local governing body passes an ordinance to increase its budget by 1% more than the 2.5% spending cap, as it is allowed to under limited circumstances in the Local Budget Law, it is not subject to referendum under the Faulkner Act.  In this case the Township passed an ordinance per N.J.S.A. 40A:4-45.14, which gives municipalities the ability to increase its budget by as much as, but no more than, 3.5% in any year in which the cost-of-living adjustment is equal to or less than 2.5%. Consequently, a group of citizens sought to prevent this increase through the use of a referendum authorized by the Faulkner Act. The court determined that the Local Budget Law exempted these types of ordinances from the referendum clause of the Faulkner Act.

The decision can be found at,31

Questions and comments can be directed to Ed Purcell Esq. at either or 609-695-3481 x137.

Very truly yours,

William G. Dressel, Jr.
Executive Director





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