Requires Director of Division of Local Government Services in DCA to establish grant program to enhance local government efficiency; appropriates $1.5 million.

A2283

ASSEMBLY, No. 2283

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman LUANNE M. PETERPAUL

District 11 (Monmouth)

Assemblyman ROBERT J. KARABINCHAK

District 18 (Middlesex)

SYNOPSIS

���� Requires Director of Division of Local Government
Services in DCA to establish grant program to enhance local government
efficiency; appropriates $1.5 million.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
establishing a grant program to promote local
government efficiency, supplementing chapter 27D of Title 52 of the Revised
Statutes, and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill):

���� "Local government unit"
means a municipality, county, or other political subdivision of the State, or
any agency, board, commission, utilities authority or other authority, or other
entity thereof.

���� "Management enhancement
review consultant" means an individual or firm that has a demonstrated
track record of successfully completed operational reviews and assessments.

���� 2.��� a.� The Director of the
Division of Local Government Services in the Department of Community Affairs
shall establish a local government unit management enhancement review grant
program.� The purpose of the program shall be to provide grants to local government
units to contract with management enhancement review consultants to conduct
local government unit efficiency reviews and to make recommendations to
streamline operations and reduce costs. An individual management enhancement
review consultant, or at least one member of the management enhancement review
consultant team, that is contracted to complete a review pursuant to the
program shall hold a professional license with the State of New Jersey as a
certified municipal finance officer, qualified purchasing agent, certified
public works manager, certified municipal clerk, certified tax collector, or
another professional certification approved by the Director of the Division of
Local Government Services in the Department of Community Affairs.

���� b.��� To participate in the
grant program established pursuant to subsection a. of this section, a local
government unit shall submit an application to the division in a manner and on
such forms as determined by the director.� An application submitted pursuant to
this subsection shall include information detailing the local government unit�s
proposed plans for the grant funding, including, but not limited to:

���� (1)�� the amount of grant
funding being sought by the local government unit;

���� (2)�� a description of how the
grant funding will be used to conduct an efficiency review, including, but not
be limited to, plans to identify opportunities for shared services, identify
cost savings through operating efficiencies, or improve the delivery of
services; and

���� (3)�� the proposed sources of
matching funding to be used by the local government unit to conduct the
efficiency review, pursuant to subsection c. of this section.����������

���� c.���� (1)� After reviewing
the applications submitted pursuant to subsection b. of this section, the
director shall select local government units to receive a management
enhancement review grant.� In selecting grant recipients, the director shall
consider factors including, but not limited to: the local government unit�s contribution
to the management enhancement review; and the cost effectiveness of any
specifically-identified opportunities for shared services, cost savings through
operating efficiencies, or improvements to the delivery of services.

���� (2)�� The maximum grant award
under the program shall be $150,000 for a county-based local government unit
and $100,000 for a municipal-based local government unit.� A local government
unit that receives a grant under the program shall contribute 25 percent of the
grant award amount to the management enhancement review.

���� 3.��� a.� Within one year of
receiving a grant pursuant to section 2 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), each participating local
government unit shall submit a report to the Director of the Division of Local
Government Services in the Department of Community Affairs, in a manner and on
such forms as determined by the director, detailing:

���� (1)�� the expenditures of the
grant funds under the program;

���� (2)�� the specific shared
services, operating efficiencies, or improved delivery of services achieved as
a result of the management enhancement review; and

���� (3)�� the specific cost
savings achieved as a result of the shared services, operating efficiencies, or
improved delivery of services pursuant to paragraph (2) of this subsection.

���� b.��� The director shall
compile the reports submitted pursuant to subsection a. of this section for
inclusion in a comparative profile of the participating local government units
and shall post the profile for public inspection on the division�s Internet
website in an easily accessible location.

���� c.���� Within one year of
posting the comparative profile required pursuant to subsection b. of this
section, the director shall submit a report to the Governor and, pursuant to
section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.� The report
shall contain information on the implementation of the grant program,
including, but not limited to: the total number of applications received under
the program; the total number of applications which were awarded grants,
including the amounts of those grant awards; and a list of best practices
concerning the streamlining of operations and reduction of costs for achieving local
government unit efficiency.� The director shall post the report required
pursuant to this subsection for public inspection on the division�s Internet
website in an easily accessible location.

���� 4.��� There is appropriated
from the General Fund to the Division of Local Government Services in the
Department of Community Affairs, the sum of $1,500,000 to provide grants to
local government units to effectuate the purposes of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill).�

���� 5.��� This act shall take
effect immediately.

STATEMENT

���� This bill requires the Director
of the Division of Local Government Services (division) in the Department of
Community Affairs to establish a local government unit management enhancement
review grant program.� The purpose of the program is to provide grants to local
government units to contract with management enhancement review consultants, as
defined in the bill, to conduct local government unit efficiency reviews and to
make recommendations to streamline operations and reduce costs.��

���� Under the bill, to participate
in the program, a local government is required to submit an application to the
division detailing the local government unit�s proposed plans for the grant
funding, including, but not limited to:

�

the amount of
grant funding being sought by the local government unit;

�

a description
of how the grant funding will be used to conduct an efficiency review; and

�

the proposed
sources of matching funding to be used by the local government unit to conduct
the efficiency review.

���� Under the bill, after
reviewing the applications, the Director of the division is required to select
local government units to receive a management enhancement review grant.� In
selecting grant recipients, the director is to consider factors specified in
the bill.� The maximum grant award under the program is $150,000 for a
county-based local government unit and $100,000 for a municipal-based local
government unit.� The bill requires a local government unit that receives a
grant under the program to contribute 25 percent of the grant award amount to
the management enhancement review.�����

���� Within one year of receiving a
grant, each participating local government unit is required to submit a report
to the director detailing:

�

the
expenditures of the grant funds under the program;

�

the specific
shared services, operating efficiencies, or improved delivery of services
achieved as a result of the management enhancement review; and

�

the specific
cost savings achieved as a result of the shared services, operating
efficiencies, or improved delivery of services.

���� The director is required to
compile the reports submitted for inclusion in a comparative profile of the
participating local government units and to post the profile for public
inspection on the division�s Internet website in an easily accessible location.

���� The bill appropriates $1.5
million from the General Fund to the division to provide grants to local
government units to effectuate the purposes of the bill. �