What type of appropriation is allowed during the last 10 days of the year preceding a new fiscal year, according to Local Budget Law?

The correct answer is Debt Service Only. According to the Local Budget Law in New Jersey, during the last 10 days of the calendar year prior to the start of a new fiscal year, municipalities are limited in the types of appropriations they can make. Specifically, they are permitted to make only emergency appropriations or appropriations for debt service.

Debt service appropriations refer to the funds allocated for the repayment of principal and interest on outstanding bonds or other forms of municipal borrowing. This timing restriction is in place to ensure fiscal responsibility and to manage the budget effectively at the close of the fiscal period.

In contrast, general appropriations, emergency appropriations (which typically require specific justification and may not follow the same restrictions), and capital improvement appropriations are not allowed during this period. This ensures that any urgent funding needs have a defined process and that municipalities remain accountable for their financial commitments as they transition into a new fiscal year.