Changes could affect taxes locally
By Jessica Ercolino, Staff Writer
Some local municipalities expecting a loss in state aid may see some of it restored if the state Legislature passes Gov. Jon Corzine’s new budget proposal.
In February, the governor introduced a plan that would cut Consolidated Municipal Property Tax Relief Aid by 50 percent to towns with fewer than 10,000 people — such as Upper Freehold and Plumsted townships — and eliminate that aid to towns with fewer than 5,000 people — such as Allentown Borough.
Gov. Corzine is now proposing that 25 percent of the eliminated CMPTRA be restored, though the numbers are subject to change pending state budget adoption.
While local officials say they are happy to see progress, they are still hoping that municipalities will see more aid restored.
”This represents really only a little more than 10 percent of the total amount of aid that has been cut, so we have about 90 percent to get restored before we’re made whole,” said Plumsted Mayor Ron Dancer.
Under the new proposal, Plumsted would see $15,614 of the original $89,765 CMPTRA cut restored. But despite an anticipated $139,000 loss in total state aid, the township intends to maintain its tax rate of 9 cents per $100 of assessed value for the coming year, according to Mayor Dancer.
The township is currently operating on a temporary budget.
”The prudent course of action is to hold on the municipal budget adoption until we know what the aid numbers are going to be so that the taxpayers are not the victims of Trenton’s budget-making decisions,” the mayor said.
In Upper Freehold, where officials adopted a budget last month, $11,435 of restored CMPTRA will have little effect on the tax rate.
”That amount is equal to less than a tenth of a penny on the tax rate,” said Chief Financial Officer Dianne Kelly.
With the proposed restoration, Upper Freehold still will lose more than $66,000 in CMPTRA compared to 2007. Ms. Kelly said the township did not want to hold up the adoption of its budget, and any additional aid that is restored will go directly toward the amount to be raised by taxation.
Under the current tax rate — 13.6 cents per $100 of assessed value — the owner of a home assessed at the Upper Freehold average of $519,800 will see a municipal tax bill of about $707.
Allentown, which was expecting to see all of its $88,307 CMPTRA eliminated under Gov. Corzine’s original plan, is slated to have about $22,000 restored.
Borough Mayor Stu Fierstein said the restored amount is equal to about 2 cents on the tax rate.
”That does not offset the $125,000 (in total state aid) that we lost or the increase in pension costs,” he said last week. “Giving us back 2 cents doesn’t cut it.”
Like Plumsted, Allentown is delaying adopting a municipal budget until state matters are worked out. Mayor Fierstein said the borough applied for extraordinary aid two months ago and is still awaiting state consideration.
As it stands, Allentown is eyeing a 23.9-cent increase in the local tax rate to about $1.28 per $100 of assessed value. For the owner of a home assessed at the borough’s $153,300 average, this will spell a municipal tax bill of about $1,967.
Staff Writer Geoffrey Wertime contributed to this article.