Bill
Bill > A2372
NJ A2372
NJ A2372Eliminates five percent down payment requirement for bond ordinances approved by counties and municipalities.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill makes permissive the down payment requirement for counties and municipalities to issue bonds. Under current law, most bond ordinances require an appropriation of at least five percent of the amount of the authorized obligation for final adoption of the bond ordinance. Although this appropriation is excluded from the property tax levy cap, relief from the requirement to make the down payment is intended to free-up scarce resources for other purposes of the county or municipality.
AI Summary
This bill amends existing law to make the requirement for counties and municipalities to set aside a five percent down payment before adopting a bond ordinance permissive, meaning they are no longer obligated to do so. Previously, a bond ordinance, which is a formal resolution authorizing a local government to borrow money, required an appropriation of at least five percent of the total amount to be borrowed as a down payment for final adoption. While this down payment was exempt from property tax caps, this bill aims to allow local governments to use these funds for other essential purposes by removing the mandatory five percent requirement.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2372 |
| BillText | https://pub.njleg.gov/Bills/2026/A2500/2372_I1.HTM |
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