TRENTON – Newark will receive $32 million, with some strings attached.
The Department of Community Affairs announced today that the state will award $32 million in aid to the city, which combined with spending cuts and other initiatives will close a $57 million gap in the calendar-year budget, according to DCA Commissioner Lori Grifa.
The aid will be in the form of a short-term loan that includes state oversight, including appointment of a State Fiscal Oversight Officer, Grifa said in a release.
The City will be required to enter into a Memorandum of Understanding (MOU) with the Division of Local Government Services in substantially the same form as the standard agreement for municipalities receiving Transitional Aid.
A copy of the letter is attached.