ASSEMBLY PASSES MORIARTY BILL PROMOTING FLEXIBILITY FOR TOWNS AND LIBRARIES TO SHARE TAX REVENUES

Bill Would Allow Library Boards to Direct Excess Funds
Into Municipal Revenue Stream to Preserve Other Local Services

(TRENTON) - The Assembly today passed legislation Assemblyman Paul Moriarty sponsored to give municipalities that fund their own libraries flexibility to tap into unused excess local library tax revenue to stave off local fiscal crises.

"Numerous municipalities are being forced to consider cutting services because an inflexible funding law is requiring them to dramatically overfund their local libraries," said Moriarty (D- Gloucester). "Municipal officials need the flexibility to work with library commissioners to ensure that taxpayer dollars are spent efficiently and where they are most needed."

The legislation (A-1265) would permit a municipal library board to transfer to the municipality any excess funds beyond the amount needed to actually operate the library and maintain a 25-percent budget surplus.

A 2007 state law limits annual local property tax levy increases to four percent. However, an older state law requires the 244 towns that fund their own libraries to do so at a mandatory rate of $33 for every $100,000 of assessed property value in the municipality.

In some cases, the amount of revenue raised through the library portion of the property tax far exceeds the amount the library actually needs to maintain services.  The funding increases realized by some libraries can amount to nearly the entire allowable four-percent increase in the tax levy.

Unless towns are able to reclaim a portion of the excess library funds, other local services may need to be cut to stay under the property tax levy cap.

"The embarrassment of riches some libraries will receive this year should be spread around the greater community," said Moriarty. "Library boards and municipal leaders should be able to work in partnership for the benefit of all property taxpayers."

The bill passed the Assembly 73 to 2 with one abstention.  The bill now heads to the Senate for further consideration.
--30--