NJ Politics Digest: Why Municipal Taxes Are Likely To Rise Because of Murphy’s Budget

Phil Murphy

New Jersey Gov. Phil Murphy. Flickr/Phil Murphy for Governor

Gov. Phil Murphy spoke a lot about his plan to increase aid to school districts throughout the state. But local residents could still see property taxes rise, because the governor failed to mention that he’s continuing to freeze state aid to municipalities at 2010 levels.

NJSpotlight reported that the flat aid, coupled with the failure to extend a two percent cap on arbitration awards for police and firefighter salaries, will leave towns hard-pressed to hold the line on property taxes.

Of course, Murphy is not the first governor to keep the aid spigot closed for municipalities.

“This will be the eighth year of flat funding, following three years during which municipal property-tax relief funding was reduced by a total of $320 million,” Jon Moran, senior legislative analyst with the New Jersey State League of Municipalities, said in the report.

While aid to municipalities has remained virtually flat over the past eight years, inflation has increased about 15 percent, according to the NJSpotlight report.

Quote of the Day: “It will only get harder.” — Jon Moran, senior legislative analyst with the New Jersey State League of Municipalities, on holding the line on property taxes in light of Gov. Phil Murphy’s decision to freeze municipal aid at 2010 levels while the two percent cap on annual raises for police and firefighters was allowed to expire.

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NJ Politics Digest: Why Municipal Taxes Are Likely To Rise Because of Murphy’s Budget