What determines the validity of a municipal budget?

The validity of a municipal budget is determined by state approval because municipal budgets must comply with the financial regulations and guidelines set forth by the state government. After a municipality drafts its budget, it typically needs to be submitted to a state department or agency, often the Division of Local Government Services in New Jersey, for review and approval. This review ensures that the budget adheres to state laws regarding budgeting practices, fiscal responsibility, and public funding.

While county approval, public voting, and council majority approval may play roles in the budgetary process or in other contexts related to governance, they do not ultimately determine the budget's legality or effectiveness. The state has the overarching authority to approve local budgets to ensure they align with state financial policies and to protect the overall financial health of municipalities within its jurisdiction. This system aims to maintain accountability and transparency in municipal finance.