On Tuesday, June 29, Governor Murphy gathered in Woodbridge for the signing of the 2022 Fiscal Year State Appropriations, which appropriates $46.3 billion in state funds and $6 billion in federal funds for New Jersey’s Fiscal Year State Budget. This year’s budget includes an extensive list of allocations including a full payment to the state pension system for the first time since 1996, Property Tax Relief and Community Affairs, and a number of other grants in aid allocations.
The FY2022 State Budget includes a contribution of over $1.6 billion dollars to New Jersey's Pension Fund. This will be the first time in 26 years that the state has made its full actuarially determined contribution.
Consolidated Municipal Property Tax Relief and Energy Tax Receipts
This year’s budget will include Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts is proposed to remain flat at $1.4 billion. Transitional Aid to Localities will receive $122.8 million. Trenton Capital City Aid will receive $10 million. The Open Space Payment In Lieu of Taxes (PILOT) will receive $4.4 million. These allocations provide a flat amount in funding from the 2021 FY Budget.
Homestead Benefit Base Year Change
The FY 2022 State Budget has updated the Homestead Benefit payments base year from 2006 to 2017 property tax amounts assessed or as would have been assessed on October 1, 2018. The change in base year is estimated to increase the average benefit for seniors and homeowners with disabilities by $130 and low-income homeowners by $145. The entire program will cost an estimated $80 million.
Affordable Housing Trust Fund
Over the period since the Governor Murphy released his proposed budget there have been several changes to the budget, including an update to funding for Affordable Housing Trust Fund. The adopted budget switches the allocations from as proposed in the budget the Affordable Housing Trust Fund to the General Fund.
Urban Park Grants
Included in the 2022 budget language is the reappropriation of unexpended funds for grants for urban parks. These funds will be available at the end of the next fiscal year and will be comprised of any unused funds from the 2022 budget.
Best Practices for Local Boards of Health
The New Jersey Department of Health has been directed to create a list of best practices for local boards of health to actively engage with local primary care physicians and nurses to address public health at the local level and further public health campaigns. This directive comes from the FY 2022 State Appropriations Act.
Open Spaces Restoration
Under the 2022 FY State Appropriations Act, the New Jersey Department of Transportation and New Jersey Transit will now be allowed to restore obsolete facilities into open spaces and parkland. The projects can be after all contamination abatement, environmental remediation, and structural demolition has been completed.
FY 2022 Budget Document, Breakdown and Language Changes
The full FY 2022 State Appropriations Act, FY 2022 Appropriations breakdown, and FY 2022 Appropriations Language are all available on New Jersey's Legislative website. Please feel free to contact us with any questions on the budget.
Contact: Andrew LaFevre, Legislative Analyst, email@example.com 609-695-3481, ext. 116