What percentage of the previous year’s budget does a temporary budget allow for?

A temporary budget in New Jersey allows for the expenditure of 26.25% of the previous year's budget. This percentage is specifically established to provide a framework for municipalities to operate while they finalize their annual budget.

The rationale behind the 26.25% figure is to ensure that the local government can manage its operations and fulfill its necessary obligations, such as payroll, maintenance, and essential services, without delay while awaiting the approval of the final budget. This amount is calculated based on the total appropriations from the previous year, which helps maintain operational stability in government functions during the transitional period.

This benchmark serves as a safeguard, allowing municipalities to function effectively without the risk of a complete budget shortfall, thereby supporting public services and community needs even in the interim period.