Concerns local unit appropriations cap.

This bill imposes a 2.5% annual cap on most municipal budget increases in New Jersey (or the cost-of-living adjustment, whichever is lower), directly affecting all towns and cities. It allows exceptions for capital projects (like infrastructure bonds), debt payments, emergencies (approved by two-thirds vote), specific contracts (e.g., water/sewer agreements), and federal/state grant matching funds. Municipalities must still comply with this cap for routine operating budgets, but can exceed it for the listed exceptions without additional approval. The bill aims to control local spending growth while permitting flexibility for essential services and unforeseen costs.