Bipartisan Bill Strengthening Municipal Audits Clears Committee

May 4, 2009

Contact: Bill Murray / (609) 292-5199
Senator Philip E. Haines (R-8)

Legislation authored by Senators Ronald L. Rice (D-Essex) and Phil Haines (R-Burlington) which would amend the “Special Municipal Aid Act” to make it more accountable to the taxpayers of New Jersey passed the Senate Community and Urban Affairs Committee unanimously today.

“When a grant is being awarded to a municipality, we need to know the full financial situation in order to get an accurate picture of the town’s true need,” said Senator Rice.

“It is especially important in these difficult economic times that we work together, across party lines, to save every dollar and pinch every penny,” Haines continued. “The taxpayers must be confident that grants disbursed to municipalities across the state are being inspected annually by the Office of the State Comptroller.”

The bill, S-2675, would require all cities and towns receiving grants from the “Special Municipal Aid Act” to submit budgets for special improvement districts and municipal public benefit corporations to the Department of Community Affairs for review. The measure also would require the Office of the State Comptroller to conduct annual audits of municipalities receiving aid. In the current Fiscal Year $143 million was budgeted for the “Special Municipal Aid Act.”

“Some municipalities, Like Newark, for example, have parking and housing authorities,” said Senator Rice. “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.”

“Multiple levels of oversight are necessary to ensure that state grants are being used for their intended purposes,” Haines concluded.