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Bill > A5308


NJ A5308

NJ A5308
Requires Director of Division of Local Government Services in DCA to establish grant program to enhance local government efficiency; appropriates $1.5 million.


summary

Introduced
02/13/2025
In Committee
02/13/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

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.

AI Summary

This bill establishes a new grant program through the Division of Local Government Services in the Department of Community Affairs to help local government units improve their operational efficiency. Under the program, local government units (which include municipalities, counties, and other political subdivisions) can apply for grants up to $150,000 for counties and $100,000 for municipalities to hire management enhancement review consultants who will conduct comprehensive efficiency reviews. To be eligible, consultants must have a proven track record and at least one team member must hold a professional certification in areas like municipal finance, public works management, or municipal clerking. Participating local governments must contribute 25% of the grant amount and submit a detailed report within one year documenting their grant expenditures, specific cost savings, and improvements in service delivery. The Director of the Division of Local Government Services will review applications based on factors like the potential for cost savings and will compile a public comparative profile of the participating units. The bill appropriates $1.5 million from the General Fund to fund these grants, with the ultimate goal of helping local governments streamline operations and reduce costs through professional consultative reviews.

Committee Categories

Government Affairs

Sponsors (4)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 02/13/2025)

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