Documents Related to Proposed Cuts in State Aid

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CDC State Aid Cuts Analysis Memo

Spreadsheet Showing Effects Across the State
Spreadsheet Showing Effects on Cumberland Towns  
   

LOCAL AREA MUNICIPAL LEADERS JOIN HUNDREDS IN TRENTON TO PROTEST PROPOSED MUNICIPAL AID CUTS

The Cumberland Development Corporation (CDC), coordinated the participation of Mayors and governing body members from the area communities in a meeting attended by more than 400 representatives of municipalities with less than 10,000 people in Trenton last Thursday.

The meeting, sponsored by the NJ State League of Municipalities, included Corzine administration officials, who explained the Governor’s rationale in proposing drastic cuts in state aid and provided the platform for local officials to make suggestions for other alternatives and to protest the Governor’s proposal which will cut in half or entirely portions of the state aid for towns of 10,000 or less in population.

Participants from Cumberland County included Downe Township Mayor Renee Blizzard, Deerfield Township Committeeman John Stanzione, Hopewell Township Mayor Bruce Hankins, Lawrence Township Mayor Tom Sheppard, Shiloh Borough Mayor Howard Scull, Shiloh Council President Harold Davis, Stow Creek Deputy Mayor Randy Dickinson, Upper Deerfield Deputy Mayor Douglas Rainear and CDC executive director Tony Stanzione.

“The small towns in Cumberland County and around the State are being unfairly targeted for state aid cuts and are being urged to share and consolidate services,” stated Tony Stanzione. “Overall they have already taken the lead in sharing services and have proven to be the most efficient and cost-effective municipalities in the State. CDC provides a forum for the townships when it comes to issues like this and a mechanism for joint actions.”

There is also growing concern that these rural towns could take an additional financial hit if fees for State police services for towns that do not have police departments are imposed in addition to the state aid cuts.

According to the local municipal leaders who went to Trenton, the rural municipal governments have been working within a spending cap every year, unlike State Government, and rural municipal budgets have been reduced, shared services are in place, others are being planned and employees multi-task by doing more than one job.

According to the CDC’s analysis of the state aid reductions, the Governor’s budget proposal cuts aid to municipalities of less than 10,000 in population by 22.7% overall while the larger towns in the state are reduced by only 7.47% overall.  The twelve rural townships in Cumberland County are being cut by 17.5% overall, while the three larger cities are expecting reductions overall of 7.75%.  A breakdown by rural town with an estimate of possible effects on local purpose tax rates follows.

 

Municipality

2008 State Aid

Decrease from 2007

Possible

Tax Rate Effect

 

 

 

 

Shiloh Borough

$21,605.00

43.57%

$0.112

Hopewell Township

$204,336.00

42.53%

$0.089

Stow Creek Township

$70,236.00

32.40%

$0.089

Lawrence Township

$125,195.00

28.62%

$0.107

Deerfield Township

$115,697.00

26.08%

$0.063

Greenwich Township

$30,185.00

23.29%

$0.048

Fairfield Township

$139,026.00

20.46%

$0.083

Commercial Township

$143,502.00

18.46%

$0.122

Maurice River Township

$199,116.00

15.45%

$0.138

Downe Township

$65,295.00

9.78%

$0.088

Upper Deerfield Township

$119,019.00

6.34%

$0.028

OVERALL FOR RURAL AREAS

  $5,814,649

17.5%

 

"The loss of state aid will be devastating to many communities.  We must maximize our resources by sharing and consolidating services, while still maintaining our individual identities,” commented Mayor Blizzard. 

Downe Township requested and jointly hosted with Commercial Township a shared services meeting with their neighbors in Lawrence, Fairfield and Maurice River Townships on March 5. Mayor Blizzard added, “by establishing shared services between the townships, we can reduce costs, deliver municipal services in a more efficient manner, and provide property tax relief for all of our residents."

“Lawrence Township was about to pass its 2008 budget with no local property tax increase because we felt in these poor economic times we had to forgo any unnecessary expenditures, remarked Mayor Sheppard.  “With these proposed state aid reductions with no notice or planning by the State, we, like many other townships, either have to raise taxes or cut services.”

The mayors and other governing body members are asking their legislators for support in stopping these cuts in 2008 and urging a planned reduction for those who are not operating efficiently and/or not taking advantage of shared and consolidated services where possible in the coming years.

The CDC Board is asking for the help of residents of the area who believe that State’s budget dilemma should not be solved through possible higher local property taxes due to the massive, unplanned reductions in municipal property tax relief or by charging rural communities for State Police coverage, to contact their legislators and the Governor.  Copies of sample letters and emails in opposition to this plan and the legislators’ and Governor’s addresses will be posted to the CDC website and to some municipal websites as soon as these documents have been approved by CDC and the municipalities.  See www.cdcnj.com for more information or contact CDC at 856-451-4200 or cdc@cdcnj.com.

 

Contact Information:

Phone:   856-451-4200  ...   Fax:    856-453-9795

 email:     cdc@cdcnj.com  or tony@cdcnj.com

Mobile: 609-364-5528

 

Executive Director:

Anthony M. Stanzione, CM

 

Mailing Address& Office Location:

Please Send All Mail to Post Office Address:

P.O. Box 1021  Bridgeton, NJ 08302

 

Office Street Location: 

76 Magnolia Avenue, Bridgeton

 

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