Message from Councilmember Ellen Zimmerman | February 21, 2025
Scotch Plains joins leaders from communities across New Jersey in urging Gov. Phil Murphy to restore a special $150 million municipal aid program that was cut from the current year’s state budget.
It is an important time to be vocal, as the governor will be delivering his final budget address on Tuesday, Feb. 25. It is our hope that the governor will announce plans to reinstate this program – generated from energy tax revenue – that is specifically designed to help municipalities stabilize property taxes.
It is long overdue for the state to restore this aid to municipalities and taxpayers, as this money is owed to us. Scotch Plains has partnered in recent years with the New Jersey League of Municipalities, the New Jersey Conference of Mayors and the Urban Mayors Association to urge Governor Murphy and our colleagues in the state Legislature to do the right thing.
Some background: A portion of the taxes we all pay on our gas and electric bills are for the use of public land, such as areas in Scotch Plains where the utility companies store their equipment in what is called the “public right of way.”
These taxes were originally collected by host municipalities, such as Scotch Plains. But then the state decided to become the collection agent for these taxes, with promises the revenue would come back to town in the form of state aid for property tax relief.
That did not happen. For nearly a quarter century, governors from both sides of the political aisle have collectively diverted billions of dollars from municipal governments to shore up the state budget. It is time to begin restoring the money to municipalities, annually and consistently.
It is important to note that municipalities did receive special aid in the 2023 and 2024 state budgets to help restore some of the funding that was owed. But the ongoing loss in state revenue has put this funding on the chopping block, once again, for fiscal ’26.
The signals we have been hearing from Trenton is that it is a very challenging budget year with a looming deficit. All appropriations will be scrutinized as the spending plan, under the state Constitution, must be balanced.
Municipal budgets, like ours, will also be closely analyzed. We are eager to secure as much outside funding as possible as we work to balance the next town budget. That is why we join in calling for the state to provide the energy tax revenues owed to Scotch Plains so that we may pass on the savings to our taxpayers – as this program was intended to do.
