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State aid restored; cuts still hurt Pascack Valley
(by Karen F. Mrnarevic - May 28, 2008)
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Revised tax relief numbers
|
| Municipality |
Population |
Originally proposed |
Revised aid |
Increase |
| Emerson |
7,318 |
$106,522 |
$136,110 |
$29,588 |
| Montvale |
7,308 |
$5,423 |
$6,929 |
$1,506 |
| River Vale |
9,751 |
$79,904 |
$102,099 |
$22,195 |
| Washington
Township |
9,670 |
$63,530 |
$81,177 |
$17,647 |
| Woodcliff
Lake |
5,953 |
$19,587 |
$25,028 |
$5,441 |
|
|
Note: These figures represent proposed state aid, and are subject to change prior to the adoption of the state budget.
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On Tuesday, May 13, Gov. Jon Corzine made a proposal to the state legislature to revise the state’s municipal tax relief contribution to municipalities with fewer than 10,000 residents.
The governor’s originally proposed aid cuts, which were announced in the beginning of March, drew the ire of many municipal officials throughout the
Pascack
Valley . Corzine has proposed to restore 25 percent of what would have been the cut from the municipal tax relief portion of total state aid to each municipality. However, the restored aid is unlikely to appease the small town residents and leaders who feel they have been unfairly punished.
The aid to be restored was not calculated based on total municipal aid, but on the amount of aid specifically designated for property tax relief, which is referred to as Consolidated Municipal Property Tax Relief Aid (CMPTRA). So while the borough of Emerson, for instance, saw a total proposed state aid figure of $755,300 for 2008, reduced by $215,850 over last year, only $106,522 of that had been designated as CMPTRA funds. The restored aid for Emerson amounts to $29,588, or about 13 percent of the total cut in municipal aid to the borough.
On the other hand, while state aid to smaller municipalities has been significantly reduced this year, the amount of state aid to school districts went up significantly. That explains why many
Pascack
Valley municipalities will see larger than usual increases in municipal taxes, while school taxes went up by a smaller amount than they would have if state aid had remained stable.
Part of Corzine’s proposal is an equalizing measure that would ensure that no community would face an increase in the average residential property tax bill of more than $100, as a result of the CMPTRA reduction. In cases where even the restored aid could not reduce an average homeowner’s tax bill enough, more state aid was restored.
In a press release issued by the Department of Community Affairs, Commissioner Joseph Doria said, “The proposed restructuring of aid to towns encourages communities across the state to examine the benefits of municipal consolidation and shared services, but also recognizes the importance of state aid for our state’s smallest communities.”
As of yet, there is no telling how the restored aid will be given to the municipalities. The state may decide to issue the funds directly to each municipality, in which case the increased aid will most likely be added into surplus. There is also the possibility that the restored aid will be applied to county taxes.
The numbers are still not final, however, and some municipalities, like Emerson, have decided not to adopt their budgets until the state adopts its budget, which should happen some time during the summer.
Karen F. Mrnarevic's e-mail address is Mrnarevic@northjersey.com.
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