The Division of Local Government Services has recently issued Local Finance Notice 2024-15 providing guidance on the CY25 Budget caps. The Local Finance Notice highlights:
- The appropriations cap (1977 budget cap) cost of living adjustment for CY25 is 2.5%
- A governing body may increase the appropriations cap to 3.5% by ordinance or bank, for two years, the difference between permitted increase and need.
- Appropriation Cap bank balances from 2023 and 2024 are available for use in CY25.
- The Group Health Insurance Exemption for the appropriations cap is 12.4% and for the 2010 levy cap is 14.4%.
We suggest you review this Local Finance Notice with your Chief Financial Officer and municipal manager.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.