In New Jersey citizens govern themselves through an assortment of political subdivisions below the level of state government. It includes counties, municipalities, school districts, and various kinds of special units providing particular services such as Sewer Authorities, etc. Each unit includes the population and land specified as its boundaries.  State legislation is the source of all local governmental authority; local units have no inherent or constitutionally guaranteed powers. Within the framework of the New Jersey Constitution, the legislature may grant or mandate to, or withdraw from, local governments such powers as it deems appropriate. By contrast in so-called "constitutional home rule" states where local governments derive powers directly from their state constitutions, local governments need not look to the state legislature for authorization to exercise these powers. Examples of limitations on New Jersey's home rule can be found in the legislative control over local powers of taxation and limits on changes in local governmental structure. Municipalities and counties may impose taxes only by methods provided in state statutes, and they may change their form of government only by statutory procedures, which includes petitioning the state legislature.

Despite this, there is more home rule in New Jersey than in most states. For whereas on paper it looks as though the local governments have no powers, in fact the legislature has turned over enormous powers to them, especially to municipalities, because of the strong home rule tradition. These powers are bolstered by the declaration in the state constitution that statutes conferring powers to municipalities and counties should be liberally construed in their favor. It has, therefore, been politically difficult for the state legislature to recapture these powers.

General state statutes affecting local governments are classified as either mandatory or permissive. Among the laws that the local units must implement are the state's local finance laws. With necessary distinctions between municipalities and counties, budgeting, spending, and bonding must be handled similarly by all these units. Permissive legislation (enabling acts) gives local units the power to carry out designated functions within a framework created by the state. Municipalities and counties have been given the power to create planning (and many other) boards or to adopt civil service, if they wish, but in each case the method of operation is set forth in state law.

Since the adoption of a constitutional amendment in 1875, special or local legislation affecting only one local governmental unit is prohibited. This prohibition arose in response to blatant legislative interference in municipal affairs. But the legislature circumvented this ban by adopting the technique of classifying local units and passing legislation applying only to certain classes or even to population groups within a class. In an effort to provide to provide for the legitimate need for special legislation, the 1947 constitution permits special or local laws affecting only one municipality or county to be passed, but if the local unit petitions the legislature for such a law, the legislature approves it by a two-thirds vote of each house, and it is subsequently adopted locally ordinance or referendum. The legislature often bypasses these requirements, however, by passing laws applicable only to a particular municipality that may be described as "all municipalities having a population not less than-nor more than-bordering on the Atlantic Ocean," etc., or applicable to particular official who may be describes as "tax collectors in all municipalities having...," etc.

The state exercises supervision over counties and municipalities both as governmental entities and as operational agencies. Chief among the areas supervised are those involving state aid, those affecting nonresidents, and those in which state functions are carried out at local levels. Where state aid is provided, as in the case of welfare, education, and roads, state standards must be met by local governments wishing to qualify for this aid. Where nonresident interests are involved, as in the area of traffic control, state approval of both traffic light installations and local regulations is required. A state function that is performed at the local level, such as the administration of justice, is also governed by procedures set out in great detail in state law and Supreme Court rules.

In 1966, New Jersey created the Department of Community Affairs, by consolidating a number of separate agencies concerned with local government. Thus, local governments couId turn to a single source for a variety of services, including aid in applying for federal grants, technical advice, and specialized training programs. Under a reorganization of the department in 1971, the department's services to local governments, as operation units, were further centralized by the creation of the Division of Local Government Services. The new division was assigned the functions pertaining to local financial aid, local management and personnel training, local land-use planning, and local financial regulation and technical assistance.

The division serves as a grantsman to put local communities in touch with the federal agencies that fund programs. It offers localities assistance in preparing grant applications and assists in obtaining state grants to supplement the local share of certain federally aided programs.

New Jersey's "interns in Community Service" program gives graduate and undergraduate college students the opportunity to get practical experience with governments and public service agencies in such areas as local administration, planning and engineering, community relations, municipal law, health, welfare, and community development. The purpose of this program, the first such State-sponsored program in the nation, is to encourage participating students to choose careers in public service, while at the same time helping the governments and agencies they serve. Federal funds have permitted an expansion of training programs for local professional and technical government employees that are given by the Bureau of Government Research at Rutgers and other institutions.