Downey, Houghtaling Measure to Facilitate Municipal Consolidation Now Law

(TRENTON) – Legislation sponsored by Assemblywoman Joann Downey and Assemblyman Eric Houghtaling to facilitate municipal consolidation in New Jersey is now law.

The new law (A-2202) authorizes municipalities to adopt ordinances for special emergency appropriations in order to cover non-recurring expenses they incur to implement a municipal consolidation. The authorization of the special appropriation is subject to the approval of the director of the Division of Local Government Services.

The use of special emergency appropriations to fund the non-recurring costs associated with the consolidation process will allow consolidating municipalities to immediately begin to realize the financial savings of municipal consolidation, Downey noted.

“If municipalities find that consolidating can deliver benefits for their residents, the initial financial obstacle should not prevent them from implementing a practical means of decreasing taxes,” said Downey (D-Monmouth). “With this new law, municipalities will be able to cut costs and provide immediate savings for taxpayers.”

"We need to get the issue of property taxes under control or New Jersey's economy won't be competitive in the years to come," said Houghtaling. "The is a simple way to help municipalities help themselves and we're excited to know that it is now law."

The governor signed the legislation into law on Friday.