N.J. Stat. § App.A:10-8
The officers of every municipality, who are required to certify to the Division of Local Government in the Treasury Department the municipal budget, shall separately certify, annually or oftener if required, to the said division, any and all amounts expended or appropriated for civil defense purposes, with sufficient identification to show the amounts allocated to such purposes as are within the purposes available for Federal funds under said Act of Congress. The said division shall compute the total amounts so certified and report the result to the State Treasurer or to such officer in the said department who shall be designated by the State Treasurer. The said amounts shall be included in the amounts used or certified for the purpose of determining the amounts authorized to be contributed by the Federal Defense Administrator to this State, equally matched by this State, pursuant to the provisions of said Act of Congress, and upon the receipt by the State of any of said Federal funds for said purposes, which include sums equally matching the sums so expended or authorized by any municipality, an equivalent amount shall be transmitted to said municipality for expenditure by the municipality for the said authorized civil defense purposes. In the event that the said Federal funds do not equal the said municipal expenditures or appropriations but represent a proportion thereof, the amount of such proportionate contribution shall be transmitted to the municipality in the same manner and for the like purposes.
N.J.S. § App.A:10-8