TRENTON Mercer County Executive Brian Hughes has outlined his administration’s proposed 2009 budget, saying that potential layoffs and other cost-saving measures are in order to help close a $43 million shortfall in the next two years.
The budget carries a 2-cent tax rate hike.
The proposed $296.5 million budget is about $3.7 million larger than the 2008 budget and the anticipated county tax rate is 45 cents per $100 of assessed property value. The 2009 tax levy will be $219, million as compared to $208.5 million in 2008.
The $20 million budget gap this year and the anticipated budget gap of $23 million next year are largely the result of labor contract obligations outpacing growth, soaring county pension obligations, and state-mandated costs surpassing revenue year after year, Mr. Hughes said.
In addition, he said, the county’s ratable growth has decreased to just 1.48 percent, down from the typical 11 percent to 13 percent growth in 2005, 2006 and 2007. And ratable growth is expected to decline again in 2010.
With 70 percent of revenue allocated for salaries, wages, and benefits for the county’s 1,900 employees, Mr. Hughes said layoffs must be considered. The county also is exploring a hiring freeze, a pay freeze for existing workers, furloughs, rolling back some health benefits and concessions on existing labor contracts.
During his March 12 budget address, Mr. Hughes said the possibility of laying off workers in the coming months will be one of the most difficult decisions of his career as county executive.
”We have soldiered through the economic difficulties valiantly, but it is clear that we in Mercer County are not immune to the damage,” he added.
Some programs and services might see reduced funding as well. But the county executive emphasized that programs serving Mercer’s neediest populations such as young children, the elderly, and the homeless will not be affected.
Mr. Hughes also noted that Mercer is expected to receive an additional $3.1 million in federal stimulus funding for various community and infrastructure projects, which could help spur the county economy by creating jobs locally.
Mr. Hughes said the county will use $13.6 million in surplus funds which represents about half the total surplus in order to lessen the burden on taxpayers. He said his administration worked to build up the surplus from $11 million in 2004 to about $26 million today.

