URGENT - ACTION NEEDED!!
 
PLEASE CONTACT YOUR STATE LEGISLATORS, AS SOON AS POSSIBLE, ON THESE IMPORTANT ISSUES.

Dear Mayor:

Decisions regarding the dimensions of the State’s FY ’07-’08 Budget are being made right now.

I. EXTRAORDINARY AID

As reported in our February 23 State Budget Analysis and our June 1 “Dear Mayor” letter, according to the Governor’s proposal, Extraordinary Aid is slated to be cut from $43 million to $25 million.
Extraordinary Aid is annually awarded, based on need and the availability of funding. Every year, applications for such aid exceed available resources. The proposed cut will, therefore mean that fewer municipalities will get any of this emergency funding and that those who do get funding are more likely get less than they need. Please contact your own representatives in Trenton and urge them to fight to restore this important source of property tax relief.

II. SALES TAX EXEMPTION FOR MUNICIPAL PARKING AND HEALTH AND RECREATION FACILITIES

As reported in our May 17 “Dear Mayor” letter, since March 5, the Senate Committee Substitute (SCS) for S-2269 & S-2289 has been at Second Reading in the Assembly. This bill would exempt from the Sales and Use Tax membership fees and dues charged by municipal, county, and nonprofit health and fitness, athletic, sporting, and shopping clubs and organizations in New Jersey as well as for municipal and county parking, storing, and garaging services.  In addition, the substitute provides an exemption from the Sales and Use Tax for the initiation fees of all clubs and organizations, regardless of their membership restrictions or profit status.
Since the proposed exemptions would affect State revenues, a decision on this will be made in the context of budget negotiations. Now is the time to contact your Members of the General Assembly and your State Senator to indicate your strong support for this common sense relief.

As reported in yesterday’s update, the Assembly has passed and, on Monday, the Senate will begin consideration of ACR-20, which would ask the voters to express their will regarding the constitutional dedication of another half-cent of the sales tax to property tax relief and reform. The Office of Legislative Services projects that this resolution would transfer $650 million in FY 2008 State General Fund revenues to the Property Tax Reform Account to finance property tax reform.  The shift would approximate $670 million in FY 2009 and $690 million in FY 2010.  As the resolution would double the amount of sales tax collections dedicated to property tax reform, the total dedication would be expected to be $1.3 billion in FY 2008, $1.34 billion in FY 2009, and $1.38 billion in FY 2010.
At least 24 affirmative votes are needed in the Senate, in order for this question to go to the voters this coming November. Please contact your own State Senator in support of this resolution.

IV. FLOOD DISASTER RELIEF

It appears that there is strong sentiment to include, in the Budget, an appropriation that would be used to meet the local government match requirements for Federal FEMA disaster relief funding, to help recover from losses suffered in the Spring Nor’easter. Please contact your State Legislators and urge them to support this funding.

                                                                        Very truly yours,

                                                                        William G. Dressel, Jr.
                                                                        Executive Director