CRANBURY: Township to debate state aid resolution

By David Kilby, Staff Writer
   CRANBURY — The state League of Municipalities has called for Cranbury’s support — along with that of all towns in New Jersey — as it asks Gov. Chris Christie and the state Legislature to provide the proper amount of state aid to municipalities.
   ”They (the league) have drafted a resolution, and they’re asking all towns in the league for the governor and senators to honor the constitution and provide state aid according to the state aid formula,” Committeeman Jay Taylor said.
   He said a resolution to support the league in this effort will come before the Township Committee at its meeting Monday. The committee has expressed how Cranbury doesn’t get its fair share of state aid.
   ”It’s not a Republican or Democratic issue,” Committeeman Dan Mulligan said, “but, unfortunately, it goes down to the local level. It’s about standing up for the town because our finances are being affected by it.”
   So far, 135 municipalities have signed the resolution that will come before the committee Monday. The resolution includes a spreadsheet detailing how much state aid each municipality receives and how much it should receive.
   The formula states Cranbury should receive $852,242 for 2011 when it only anticipates receiving $467,020. That $385,222 difference would have provided Cranbury with enough money to practically keep taxes flat this year, Committeeman Jay Taylor said.
   This year, neighboring Monroe Township anticipates receiving $2,263,503 in state aid, and Jamesburg anticipates receiving $413,705. The league’s resolution soon should come before their governing bodies as well.
   ”That money ($385,222) not coming to us would have made the 2-cent tax increase a moot point. It wouldn’t have even been a discussion,” he said.
   ”That would have almost exactly offset the tax increase,” Mr. Mulligan said.
   The budget for Cranbury this year is $10,811,557 with $6,327,339 to be raised by taxation and a tax rate of 39.5 cents per $100 of assessed value, a 2-cent increase from last year.
   The owner of a house assessed at the average of $608,299 will pay $2,402 in taxes, which is $87 more than last year.
   The Microsoft Excel spreadsheet lays out how much Cranbury received and how much it should have received, according to the current state aid formula.
   In 2002, Cranbury received $617,086 when it should have received $632,513. In 2003, it received $621,674 when its state aid should have been $638,838.
   From 2004 through 2007 Cranbury received $631,102 when it should have received $654,809 in 2004, $677,728 in 2005, $708,225 in 2006 and $747,178 in 2007.
   According to the spreadsheet, in 2008, the township received $609,368 when it should have received $784,537. In 2009, Cranbury received $584,018 from the state when it should have received $835,531; and in 2010, it received $467,020 from the state when it should have received about $835,000.
   According to the spreadsheet, Cranbury has received $6.5 million in state aid over the past decade when it should have received $8 million. Thus, since 2001, Cranbury has received almost $1.5 million under the amount of state aid it is entitled to as determined by the state formula.
   ”The 135 (municipalities) passed the resolution saying, ‘We’re entitled to tax dollars just like anybody else,’” Mr. Mulligan said. “It’s something I’m personally in support of. Cranbury generates a lot of tax dollars, a lot of state income tax and a lot of sales tax. We really don’t get a per capita fair share back.
   ”Energy tax receipts are concerning because that’s where we’re compensated for by the land used by the state. At some point, the state decided they’re going to collect that money to help offset state cost. That’s in violation of state laws,” Mr. Mulligan said. “We’re entitled to our state tax receipts. As far as state aid, we’re not getting our fair share. We’re generating a lot of money but we’re not getting our fair share back.”
   He said reducing state aid amounts “makes sense for the Camdens, Trentons and Newarks that take in vast amounts of state aid and squander it. There’s not waste in Cranbury. We’re almost completely self-funded on the municipal and school level.”
   He added, “Yes, we’re wealthy. But at what point is it not fair anymore?
   Mr. Mulligan said, “I actually didn’t think the money (Cranbury should be receiving) would be so high. It’s really concerning more than anything that we’re not getting our share of state tax dollars.”
   ”We never really had it put down to the formula,” Mr. Taylor said, expressing his gratefulness for the spreadsheet provided by the league. “We never really calculated what the cost difference was. The league provided us with an Excel spreadsheet so we could see what we’re losing out on.”
   He said, “The purpose of it coming before us on the agenda (at the next committee meeting) and the intent is to join with the League of Municipalities so we get the appropriate state aid to our town. While it’s too late for this year, it is certainly good for next year. With 135 signing on, I hope the governor and legislature honor the commitment they made to us.”
   For information on the letter to the governor and legislature visit njslom.org/letters/2011-0512-tax.html.