The Division of Local Government Services (DLGS) has issued Local Finance Notice 2020-02 providing specific instruction and direction to municipalities considering holding a public referendum on exceeding the 2% Levy Cap or the 2.5% Appropriation Cap. If your municipality is considering a public referendum we suggest that you review this Local Finance Notice with your professional staff.
The various deadlines for the referendum process are determined by the date the election is held. If the municipality has a Type II board of education the election is held on April 21, regardless when the school board elections are held. If the municipality holds a non-partisan election in May and has an upcoming election then the election is held on May 12. If there is no upcoming non-partisan election then the referendum election is held on April 21. Please note that municipalities with a population under 500 can choose to have a vote by mail election pursuant to N.J.S.A. 19:62-1 et seq.
A summary of Municipal Levy Referendum deadlines:
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Referendum Event
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Municipal Levy Cap Referendum on April School Election Date (Partisan)
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Municipal Levy Cap Referendum on May Non-Partisan Election
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Publication of Notice of Availability of Mail-In Ballots
*Please note that this notice does not bind the municipality to hold an election and does not need to include the referendum amount
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February 25
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March 17
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Submit requests for approval of municipal referendum narrative to Division of Local Government Services
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March 20
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April 10
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Latest date to introduce municipal budget
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March 30
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April 22
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Last date of passage of resolution setting the referendum question (amount) and sending copy to: County Clerk, School Board Secretary (if school vote also taking)place)
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March 30
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April 22
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Deadline to send resolution setting the referendum question to Division of Local Government Services
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April 1
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April 23
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Last date to cancel a planned referendum
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March 30
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April 22
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Latest date to publish municipal budget
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April 9
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April 30
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Election Date
*Please note that the polls must be opened from 6:00 a.m. to 8:00 p.m.
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April 21
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May 12
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Decision of Board of Canvassers
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April 29
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May 15
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Throughout the process the governing body must take the following action:
- Pass a resolution by simple majority authorizing a “Notice of Availability of Mail-In Ballots”. Please note that due to time constraints the Division of Local Government Services (DLGS) suggests that if the governing body is considering a public question but has not yet made a final decision the notice should be published.
- Introduce the municipal budget not later than March 30 for the April vote and April 22 for the May vote. The budget must reflect tax levy and provisions of a planned referendum
- Publication of the introduced budget must be no later than April 9 for the April vote and April 30 for the May vote.
- Pass a resolution authorizing the referendum question no later than the close of business on March 30 for the April election and April 22 for the May election. This resolution must set forth the exact language of the explanatory statement to be printed on the ballot.
- Pass a resolution if the municipality has published the Notice of Availability of Mail-In Ballots but chooses not to have the referendum. This resolution must be given to the County Clerk no later than the close of business on March 30 for the April election and April 22 for the May election.
- Submit a request for a narrative explanatory statement to the Director of the Division of Local Government Services by close of business on March 20 for the April election and April 10 for the May election. Please note that you can contact the Division either in writing or by conference call.
- Adopt the final budget by May 22 for April election and June 5 for May election.
The referendum must be approved by 50% plus one vote cast to pass otherwise the question fails. If the referendum fails the governing body has the flexibility to amend the budget to meet current needs provided that the governing body initially acted in good faith. It is recommended that the municipality should plan in advance what actions it will take if the referendum is defeated and be prepare to take immediate action to adopt a budget within the 2% levy cap.
Contact: Lori Buckelew, Senior Legislative Analyst, lbuckelew@njlm.org, or 609-695-3481 x112.