East Windsor Mayor Urges State To Release Money It’s Withholding

EAST WINDSOR, NJ — Mayor Janice Mironov has joined over 400 Mayors from across the state, in urging Gov. Phil Murphy to release hundreds of dollars they say the state is withholding from local government.

In an open letter, mayors cutting across party lines have argued that the state is accumulating utility fees that rightfully belong to the local governments.

This money, the mayors say, is a necessary first step in addressing property tax affordability and offsetting other costs.

The letter was issued by the New Jersey State League of Municipalities (NJLM), the New Jersey Conference of Mayors (NJCM), and the New Jersey Urban Mayor’s Association (NJUMA).

The request is not unique. The elected officials are simply asking the state to fully fund the Energy Tax Receipts Property Tax Relief Act in the FY24 state budget.

“We appreciated the $75 million that was included in the FY23 budget, however, the full funding of the ETR program should be $350 million,” the mayors said in a press statement.

For years, State officials from both sides of the aisle have diverted funding from Energy Taxes to plug holes in the State budget and to fund State programs. The mayors believe the restoration of this funding to municipalities is long overdue and it would bring funding for all municipalities back to 2008 levels.

“It is well past time for the diversion by state officials of this municipal funding intended for local property tax relief to end,” Mironov told Patch in a statement.

“Municipal governments currently are facing stark financial challenges and difficulties, including the dramatic hike in healthcare premium costs for our employees, huge pension increases, skyrocketing costs for solid waste and recycling collection and disposal, increased insurance costs, new state environmental mandated costs, and much more — all driving costs that will ultimately be borne by property taxpayers without relief.”

Mironov is the past President of the NJ Conference of Mayors and past President of the NJ League of Municipalities.

Previously, taxes on gas and electric utilities were collected by the municipalities, and when

the State began collecting these taxes, it promised to return the proceeds to
municipalities for property tax relief.

"Just as municipalities collect property taxes for the benefit of school districts, counties, and other entities; the State is supposed to collect Energy Taxes for the benefit of municipal governments," the mayors said in their letter.

"Local officials are clearly committed to limiting their reliance on increased property taxes while
bearing the responsibility to provide for local needs including critical public safety and health
needs of the community."

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