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NJ Mayors' Mixed Reaction To Governors Budget Propsal Cuts

Mayors May Have To Raise Taxes

Updated: Tuesday, 16 Mar 2010, 10:05 PM EDT
Published : Tuesday, 16 Mar 2010, 10:02 PM EDT

Reaction by mayors from around the state was mixed Tuesday to Gov. Chris Christie's budget proposal that calls for sweeping cuts to municipal and school aid.

The proposed reduction in aid means the mayors will likely be faced with the prospect of raising taxes, cutting programs or layoffs — possibly all three.

Several of the state's mayors met as a group to attend Christie's budget address, during which the governor detailed his plan to lawmakers, municipalities and schools.

"Every department of state government has been asked to tighten its belt," Christie said. "We will demand local governments do the same."

New Jersey Conference of Mayors Executive Director Albert LiCata said the mayors acknowledged that the state and local governments are facing the same struggle and that everyone will feel the pain of the cuts.

"We're not doing cartwheels, but we realize where we are and we've got to get through the tough times," LiCata said.

Christie's $28.3 billion budget cuts $819 million for the states schools — roughly 5 percent of each school's budget — and $445 million in municipal aid.

A major concern for mayors is a 2.5 percent cap in property taxes, Christie's proposed constitutional amendment that LiCata said would result in layoffs.

The Republican governor proposed a toolkit which included reforms in collective bargaining, civil services, elections, pensions and employee benefits; all which would work in conjunction with the proposed amendment.

"If this toolkit is can be implemented, we can meet those goals," LiCata said.

Some mayors expressed doubt that lawmakers would produce the budget that includes all of Christie ideas.

Mayor Ron Jones of Beachwood, an Ocean County town of about 11,000 residents, characterized the budget proposal positively, calling it the Noah's Arc of fiscal survival.

"The question is, will the Legislature have the guts to enact such a budget," said Jones, a moderate Democrat.

Bradley Beach Mayor Julie Schreck, another Democrat, said her Monmouth County town of 5,000 residents will suffer from cuts in aid that she believes Christie has unfairly mischaracterized.

"Aid is a misnomer," Schreck said, referring to taxes assessed from businesses. "It's a consolidation of taxes owed to the town."

Schreck said that revenue, whether big or small, makes a world of difference to smaller towns when making decisions to lay off local government employees.

Brian Wahler, the Democratic mayor of Piscataway, said Christie's address ignored the effect increasing health care cost and pay increases have on municipalities struggling to balance their books.

"It sounds good right now, but somewhere along the road you are going to have to address these issues," Wahler said.

Mayor John Bencivengo of Hamilton, in Mercer County, saw Christie's address as a shift from previous budget proposals.

"There's not a time more important that Democrats and Republicans have to come together and make a decision to stop spending," the Republican said. "What I see happening from this speech today is that he's saying everyone has to come to the middle. For Hamilton, it means some tough times ahead."

The mayors will pay close attention to the formula lawmakers will use to determine how aid is cut from municipalities, which LiCata conceded could change the group's tone of support.

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