by Davy James, Staff Writer
An anticipated decrease in state aid may present the township with difficulties when putting together the upcoming municipal budget.
Local officials said they’re anticipating a $500,000 cut in state aid and the upcoming municipal budget will most likely carry a proposed 1 percent spending increase from last year’s $49.5 million budget.
”It’s very difficult putting together a budget when you’re not sure what you’re going to get from the state,” said Mayor Frank Gambatese. “Every item in the budget is under review right now. When we’re looking at the actual budget this year, it’s only a 1 percent proposed increase over last year. But when you’re raising the budget by a small amount you need to try everything and look at every item. Hopefully we’re going to be able to accomplish this with as little pain as possible. But we’re in better shape than most towns.”
Last year, South Brunswick received $6.89 million in state aid, down $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.
Mayor Gambatese said the revenue is down across the board, including in areas such as interlocal agreements, which generated approximately $20,000 by providing services to other townships.
”With construction fees we normally take in $2.7 million, but last year we only had $2 million,” he said. “You can only anticipate what you took in last year, so that’s a drop of $700,000.”
Other revenue sources like sewer line connection fees are down because construction is down.
”As building has slowed so has commercial warehouse applications,” Mayor Gambatese said. “We haven’t had a Planning Board meeting yet this year when normally we meet every week. New applications aren’t being dropped off and that’s having a dramatic impact.”
Mayor Gambatese said he’s hopeful that changes to Council on Affordable Housing regulations, which would reduce fees developers have to pay into the COAH fund, will encourage new businesses to come to South Brunswick.
Mayor Gambatese said South Brunswick received approximately $950,000 in grants last year, a figure which he anticipates to be down to approximately $200,000. Anticipated increases in contributions to pensions are another area of concern once the governor releases his proposed budget sometime in spring.
In 2008, the township was required to contribute $2.36 million to pensions, up $839,250 form 2007’s $1.51 million. Ultimately, the impact of state aid will determine the shape of this year’s municipal budget.
”(Gov. Jon Corzine) is struggling himself while looking for stimulus programs and any help from the federal government he can get and we, in turn, are looking for the same thing,” Mayor Gambatese said. “If revenues drop, and you can only raise taxes by so much, then the only thing you can do is cut expenses. This may be salaries and wages because everything becomes a look-and-see. We have great services in this town like the library, the recreation program and our senior programs and we don’t want to cut those, but everything is under review right now like every other town is doing.”
