Testimony Shows Corzine Municipal Aid Cuts Shortchange Small Towns*

By Bill Murray

                       Governor Jon Corzine’s plan for $37.5 million in municipal aid cuts treats small towns unfairly and would give local leaders little choice but to approve devastating increases in property taxes, the Senate Budget and Appropriations Committee heard from witnesses at Rutgers University today.

            The budget proposal provided by Governor Corzine would slash or eliminate aid to towns with populations under 10,000, in a stated effort to provide incentive for small towns to consolidate or share services.

          The proposal gives small towns no time to implement cost-cutting plans, let alone merge with other communities, before the cuts take effect on July 1.

            “The Governor’s sudden proposal to slash aid doesn’t give municipalities time to implement sensible budget cuts or investigate sharing with neighboring governments, virtually guaranteeing immediate property tax increases in every small town in New Jersey,” said Senator Steven Oroho (R-24), a member of the budget committee.  “The mayors who testified today made clear that for every dollar of municipal aid that is lost, a dollar of property tax increases or service reductions will be necessary.”

            The Senators noted that despite nearly $40 million in aid cuts targeted at small towns, more than $140 million in “Distressed Cities” aid remains fully funded.

            “If across the board budget reductions are truly necessary, why does it only appear that small towns have been targeted?” asked committee member Phil Haines (R-8).  “The mismanaged ‘Distressed Cities’ program should have its funding rolled back to the $40 million or so that it received just six years ago.  If we are to truly spread the burden of budget cuts statewide, all towns should be forced to economize, regardless of size.”

            Senator Anthony Bucco (R-25) noted that property taxpayers in large urban municipalities will benefit from the continued increases in Abbott funding that they received over the last six years, while many smaller municipalities will be further hurt by small 2% school aid increases.

            “Many suburban school districts have been flat-funded for five or six years now, driving property taxes higher at a dizzying rate,” said Bucco.  “While those districts will see minimal aid increases this year, Abbott and Rim districts that have seen huge year-over-year aid increases will again see increases of up to 20% this year.  If our budget situation is as dire as the Governor claims, all school districts should be forced to share the burden of smaller aid increases.”

            Senate Republican Budget Officer Leonard Lance (R-23) noted that his proposed constitutional amendment, SCR-39, would prevent the state from continuing the accumulation of debt without voter approval that has contributed to our current budget difficulties.

            “New Jersey has borrowed tens of billions of dollars without the consent of the voters,” said Lance.  “The repayment of that debt has consumed an ever-larger portion of the budget, forcing us to now consider undesirable cuts to municipal aid.  The passage of my constitutional amendment, SCR-39, will help ensure that additional expensive debt is not assumed without the consent and oversight of the taxpaying public.”

 

 

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