SOUTH BRUNSWICK: State aid may hurt budget

by Davy James, Staff Writer
   The Township Council is working on a municipal budget that cuts spending, but still could carry a tax increase because of an expected decrease in state aid.
   The proposed budget, presented by the council Tuesday, cuts spending by $1.5 million from last year’s $49.5 million spending plan. Overall, the proposed spending plan would be 3.4 percent less than last year, but there would a 4-cent tax increase.
   ”This is a tough year for everybody, and the toughest part is the simple fact that the economy is in a recession nationwide, in our state and in our community,” said Township Manager Matthew Watkins during the presentation. “That makes it tough financially because there is so much uncertainty. We had to wait because we didn’t know what the state was going to do.”
   Mr. Watkins said the delay in Gov. Jon Corzine’s state budget, which is usually delivered in February, also caused a great deal of uncertainty. He said the state told municipalities to shape the budget assuming state aid would be the same as last year.
   However, Gov. Corzine said during his budget speech Tuesday that there would be a 2 percent cut to municipalities in state aid, which would cut approximately $125,000 from the amount South Brunswick received in 2008.
   Last year, South Brunswick received $6.89 million in aid after the state cut $421,027 from 2007. Last year’s budget increased spending by about $410,000, but tax rates remained the same at 62.5 cents per $100 of assessed valuation because of an increase in the amount of surplus used as revenue in the budget.
   Under that rate, the owner of a home valued at the township average of $194,400 paid $1,215 in municipal taxes last year.
   Mr. Watkins said the 2 percent cut in state aid would cause changes to the proposed budget, but it’s unknown where the cuts will be until the state sends more information. He said there also are existing variables in the budget for possible pension payment deferrals and a possible waiver of the tax levy cap for South Brunswick.
   Mr. Watkins laid out the possible impacts of the new budget, saying permit applications may take longer to process, inspections may take longer to schedule, grass may be longer before it gets cut, and leaf and snow removal may take longer. He said the services in the township will be just as good as they are now, but the services will not be as fast.
   Mr. Watkins said the final budget figures may not be known until mid-April because so much is dependent on the state providing more information. Therefore, the budget proposed Tuesday was a projection that may undergo drastic changes once the state releases more definitive information.
   Councilman Joseph Camarota called the budget sobering.