New Jersey municipalities that receive special state aid may undergo increased oversight under proposed legislation that would require additional auditing procedures.
The measure, S. 2675, is a bipartisan initiative, with Sen. Ronald Rice, D-Essex and Phil Haines, R-Burlington, sponsoring the bill. It would amend the Special Municipal Aid Act.
The measure would require improvement districts and municipal authorities in cities and counties that receive grants under the act to file their budgets with the Department of Community Affairs for review. The state comptroller’s office would conduct annual audits of local governments that receive special aid.
“Some municipalities, like Newark, for example, have parking and housing authorities,” Rice said in a press release. “In order to ensure that these groups are truly being efficient, we must require budgets to be submitted and allow the state comptroller to conduct audits. This measure will ensure more accountability and proper spending.”
In fiscal 2009, the state designated $143 million for special municipal aid.
