N.J. Stat. § 40A:4-3 : — MUNICIPALITIES AND COUNTIESChapter 40A:4 —3 - Annual budget TEXT PDF The governing body of each local unit shall adopt a budget for each fiscal year. The budget of each local unit shall be prepared on a cash basis unless otherwise permitted by law. N.J.S. § 40A:4-3 L.1960, c.169, s.1, eff. 1/1/1962.