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Feeling the sting of state cuts
(by Maggie Fazeli Fard - March 12, 2008)
Less than one month after River Vale officials patted each other on the back for being among the first to introduce a municipal budget – a budget with a $38 increase, to boot – the township was dealt a hard blow: a $200,000 cut in state aid.
On Feb. 25, anticipating $1,162,455 in state aid, the River Vale council introduced a municipal budget reflecting a 2.4-percent tax increase, $38 on the average home assessed at $596,000.
The township was able to absorb a five-percent increase in what Mayor Joseph Blundo called “uncontrollable costs,” which include contractual and state obligations, while including a $1.5 million capital improvement program in the budget. Capital projects include a $57,500 siren and communication system, more than $110,000 in upgrades to police department equipment, and more than $300,000 in field improvements including Mark Lane renovations.
Other projects were examples in shared services such as a joint venture with Old Tappan to construct a skateboard park, costing the township $14,375, and a Pascack Valley-wide road resurfacing program, costing the township $287,500.
The proliferation of interlocal service initiatives made the cut in state aid sting even more; the purpose of decreasing state aid, said Blundo at the March 10 council meeting, was to encourage consolidation of services and the possible mergers of smaller towns.
“Some towns think of shared services as helping out in fires,” said Blundo, noting that in addition to the shared capital projects the township shares dispatch services and splits gasoline costs with Old Tappan, uses the county’s dog warden service and shares health services with
Township of
Washington .
“We do it not because the governor is giving us a carrot,” said Blundo. “We do it because it’s right.”
Blundo was among more than 200 town officials who attended an event sponsored by the League of Municipalities in
Trenton last week, where they met with representatives of Gov. Jon Corzine’s administration to discuss the governor’s proposed budget.
If passed this summer, the $33.3 billion state budget would cut municipal property tax relief by $189.6 million, with the biggest slashes affecting towns with fewer than 10,000 residents. River Vale was counted among the 10,000-and-under municipalities and, as a result, may see a $200,576 cut in aid, which would increase the impact on taxpayers from 2.4 to five percent.
“The governor got his head handed to him with the scheme to hock the turnpike and the parkway,” said Councilman Mark Bromberg, referring to the heated opposition Corzine met when he announced a proposed toll hike earlier this year. “In turn, we got our heads.”
Despite Bromberg’s gloomy depiction of the situation, the mayor was confident that River Vale could recover from the news of the cut. Blundo said that he expects the legislature to step in and push for changes to the governor’s budget, but that a “significant cut” should still be expected.
Locally, the mayor consulted with the township auditor, Dietur Lerch, who recommended that the council hold the budget hearing next Monday, March 17, but not take any action. The township’s CFO, Gennaro Rotella, would then make suggestions on where the municipal budget can be further tightened. Blundo said that the governing body’s goal is to maintain the average $38 increase.
Furthermore, said Blundo, the township may challenge the state’s categorization that River Vale has a population less than 10,000. If the township can prove that it has more than 10,000 residents, the cut in aid would be limited to $150,000, translating to a savings of $15 per household.
“I don’t think it’s devastating news,” said Blundo. “I think we’ll be able to overcome it.”
Maggie Fazeli Fard's e-mail address is fazelifard@northjersey.com.
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