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State aid numbers still lower than last year
(by Karen F. Mrnarevic - July 08, 2008)
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State Aid at a Glance
|
|
Municipality
|
State Aid 2007 |
State Aid 2008-09 |
Decrease
|
Percent |
Emerson
|
$971,150
|
$817,434 |
$153,716
|
15.8
|
Hillsdale
|
$1,671,914
|
$1,523,770
|
$148,144
|
8.8
|
Montvale
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$1,717,233
|
$1,601,766
|
$115,467
|
6.7
|
Park Ridge
|
$654,331
|
$508,260
|
$146,071
|
22.3 |
| River Vale |
$1,162,455
|
$1,008,487
|
$153,968
|
13.2
|
Westwood
|
$1,462,983
|
$1,314,289
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$148,694
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10.2
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Woodcliff Lake
|
$793,160
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$695,671
|
$97,489
|
13.2
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Gov. Jon Corzine signed the $33 billion state budget on June 30, and to the dismay of many local leaders, state aid to municipalities, especially those with 10,000 or fewer residents, has not been restored to last year’s level. Some municipalities in the Pascack Valley have already adopted their budgets containing the originally proposed state aid for 2008, which was significantly lower than 2007; others adopted budgets listing state aid figures consistent with those from 2007. The aid numbers in the state’s finalized budget were higher than originally proposed in March, but constitute a substantial cut from last year, as much as 22 percent, as was the case with Park Ridge.
The Borough of Emerson adopted its budget on Tuesday, July 1, having adjusted the total revenues to reflect the final state aid numbers. Prior to adopting the budget, the mayor and council declared that for the time being, the borough would be sending out estimated tax bills to its residents.
According to Borough Administrator Joe Scarpa, estimated tax bills are a necessity, since a final tax rate has not yet been approved by the state. “Waiting for the actual rate from the state, at this point, will severely hinder the borough’s cash flow (ability to pay payroll and bills including the school),” he wrote in an e-mail. “Any necessary tax adjustments will be made on the next round of tax bills sent to residents once the actual rate has been determined and approved in Trenton.”
But municipalities that had already adopted their budgets prior to the state adopting its own budget will not be adjusting the state aid totals. For these municipalities, any extra state aid will be added into surplus and hopefully offset expenditures next year.
Hillsdale had been waiting to hear from the state regarding extraordinary aid for which the borough had applied. The originally proposed 2008 budget would have resulted in a $307 tax increase for the owner of a home assessed at the borough average of $579,000.
Montvale, which adopted its budget on June 10, calculated that its state aid would total $1,598,602 this year, based on aid proposed by the state in March. However, the final aid Montvale will receive from the state will be $1,601,766, which is $115,467 less than the borough received from the state last year.
Park Ridge adopted its municipal budged on May 15. The total state aid anticipated in the adopted budget was $453,600, or $200,731 less than the previous year’s aid. At the time that the budget was introduced, the Finance Committee stated, “This loss of aid is equivalent to $58 annually per home,” which, incidentally, was close to the anticipated $50 increase in taxes to the owner of a home assessed at the borough average of $505,000. The final state aid figure for Park Ridge is $508,260, which is still considerably lower than 2007 aid figures.
The Township of River Vale had originally counted on receiving $1,162,455 in state aid, and included that figure in its originally proposed budget. However, only a month after introducing the budget, the township learned that it could expect a $200,000 cut in aid, which could have made the average household’s tax increase more than the anticipated $38. The final state aid figure for River Vale is $1,008,487, $153,968 less than the township received in 2007. The township also received $200,000 in extraordinary aid from the state in 2007. The township has not yet adopted its budget.
The Township of Washington, which introduced its budget on May 12, later than most of the other Pascack Valley Municipalities, was able to factor in anticipated cuts in state aid. As a result, its proposed budget included $932,893 in state aid, $130,180 less than 2007. The final state aid figure is lower still: $919,950. The township adopted its budget on June 13; it is not determined how the township will make up the extra $13,000 in revenue, but it will most likely have to dip into its surplus to fill the gap.
The Borough of Woodcliff Lake had originally calculated its budget with a total state aid of $684,246, or $109,914 less than 2007. Even with the cut in aid, the borough had anticipated a flat tax rate, with no increase anticipated. The final state aid figure is actually $695,671.
Although towns with fewer than 10,000 residents were the hardest hit by the aid cuts, Westwood, with a population of approximately 10,935 residents, also saw its state aid figure drop from 2007. Its budget, adopted on May 20, anticipated $1,309,965 in state aid, $152,973 less than 2007. The final number is slightly higher than that budgeted for, $1,314,289.
The question on taxpayers’ minds is whether the revised state aid will have any real effect on their property taxes. In cases where municipalities adopted their budgets prior to receiving the final aid numbers, property owners will not experience a change in what they owe; they can expect to pay taxes based on the originally proposed tax-rate. Any aid that was not anticipated in the adopted budgets with be put into surplus to offset next year’s expenditures.
Karen F. Mrnarevic's e-mail address is Mrnarevic@northjersey.com.
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