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Posted on: October 13, 2023

DLGS Issues CY 2024 Municipal Budget Cap Information

The Division of Local Government Services (DLGS) has issued Local Finance Notices 2023-19 to address issues related to the CY 2024 municipal budget and the 1977 and 2010 cap laws.  

The Division has advised that the appropriations cap COLA for CY 2024 budgets is 2.5%. The 1997 cap law base is 2.5%, which is the statutory maximum, except the governing body may pass a COLA ordinance increasing the cap base by 3.5%. The Local Finance Notice outlines the requirements and process for passing a COLA ordinance.  

In regard to Health Benefits costs, the 1977 cap law excludes group health insurance that is over 4% of the previous years but does not exceed the State Health Benefits increase. The State Health Benefits increase for CY 2024 is 7.4%. As a result, the 1977 cap exception for Group Health Insurance for CY 2024 is 3.4%. The 2010 cap exception for Group Health is 2%. Therefore, the 2010 cap exception for Group Health Insurance is 5.4%.  

The one-year cap exclusions for the following appropriations: Pension, Garbage and Trash Removal and Disposal, Recycling, Gasoline and Diesel. and Worker’s Compensation Insurance will be added to the appropriation cap base for 2024. Municipalities that appropriated correct amounts outside of the cap for these purposes on sheet 20 of the budget will be allowed to add the 2023 appropriation to the 2024 cap base. 

We suggest that you review this Local Finance Notice with your municipal professionals. 

Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs,, 609-695-3481, x112.

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