Amid Gov. Corzine’s proposals, officials mull Maple Shade’s funding By Corzine’s proposed reduction in state aid.At its Wednesday night meeting, council called on State Senator Diane Allen and Assembly members Herbert Conway and Jack Conners “to work with their colleagues in the legislature and with the governor to take affirmative action to restore program funding sufficient thonor state statutes and their stated commitment to the cause of property tax relief in all New Jersey municipalities.”
Maple Shade Mayor Lou Manchello is concerned about the reduction in state aid proposed by Corzine in February.
“It’s unfortunate – it was proposed – we’re hoping the legislature reverses it,” Manchellsaid. “We don’t feel that the way to reduce property taxes is to reduce municipal aid – actually that has the opposite effect – we have to make up that funding and the only way we can do that is by property taxes.”
Maple Shade Township Manager George Haeuber
said Corzine’s plan includes “considerable reduction” in state aid to municipalities.
“This of course presents a problem for us” because a revenue reduction of almost $230,000 amounts to a point and a half on the local tax rate, Haeuber said. “Right now we’re trying to decide how we’re going to deal with that.”
He said a lot of municipalities in state are going to hold off introducing their budgets until they have a better idea of what’s going to happen. The state budget will not be adopted until the end of June.
“A battle between the legislature and the governor over that issue among others could well hold off the state’s budget adoption until maybe even past its statutory due date which is July 1,” Haeuber said. “I think a lot of municipalities are going to be waiting until they have a real number.”
He said council is permitted to adopt a temporary budget, one not to be 25 percent more than last year’s budget for the first quarter and will cover first three months of the current year. Also it is allowed to pass emergency temporary budget amendments.
“We can function until this is done,” Haeuber said. “It’s not the most desirable circumstance, though.”
Corzine’s plan is to make a steep reduction in state debt. His proposed $33 billion state budget is $500 million less than last year’s.
He is also looking to cut $472 million from the state program of property tax rebates – wiping them out for households earning more than $150,000 a year. Corzine is also calling for a $143 million cut in aid to hospitals and another $190 million earmarked for municipalities.
All told, Corzine’s cuts could equal about $1.4 billion.
