hold down
budget increase
State aid helps
hold down
budget increase
BY LAYLI WHYTE
Staff Writer
RED BANK — The borough was handed a check from the state for $100,000 in extraordinary aid Monday, earmarked for property tax relief.
Assemblyman Michael Panter presented a check to Councilman Pasquale Menna outside the borough municipal building.
"Red Bank is one of four towns in our district that has received this aid," said Panter.
The other towns in the district that are receiving extraordinary aid are Hightstown, $250,000, Shrewsbury Township, $40,000 and Freehold, $25,000.
In order to qualify for the aid, eligible municipalities must demonstrate that circumstances beyond their control caused their respective tax rates to spiral upward.
The Department of Community Affairs oversees the grant process for Extraordinary Municipal Aid through its division of Local Government Services. The total amount of grants that will benefit the first 98 municipalities to receive this aid is $41 million.
"This is a way for the state to support Red Bank and towns like it, that do so much for the area," said Panter.
"The state has recognized that the age where a lot of municipalities can do it alone is over," said Menna, who was standing in for Red Bank Mayor Edward J. McKenna Jr.
Menna said that the burden that is being shouldered by the borough, due to its high number of nonprofit organizations, Riverview Medical Center being the largest, and its tax exempt cultural centers, such as the Count Basie Theatre, leave the residents of Red Bank entitled to some relief.
Menna praised Panter’s efforts on behalf of Red Bank and surrounding towns.
"[Assemblyman Panter] has labored so effectively in the entire Two Rivers area," he said.
Menna also gave equal credit to Assemblyman Dr. Robert Morgan and Sen. Ellen Karcher for their work in securing tax relief.
According to Panter, New Jersey has the highest property taxes in the country.
Chief Financial Officer Bruce Loversidge said that the aid, in addition to the $70,000 the borough received from the Homeland Security Grant program, is responsible for holding the tax increase to 1.5 cents in the 2004 budget. The grants helped to reduce the anticipated increase by 2 cents.
"It’s had a dramatic impact," said Loversidge.
Panter and Morgan have been focusing on property tax relief for their constituents. According to Panter, both assemblymen voted in favor of the bill, recently passed by the state Senate and signed into law by Gov. James E. McGreevey, which will put a cap on local school district budgets.
Panter said the way the educational system in New Jersey is set up, with school budgets coming directly from property taxes, is "fueling the property tax crisis."