News Posted: 2/22/2009
County grapples with $394M budget
Middlesex County freeholders are reviewing a $394 million proposed budget that is $1.6 million less than the current spending package but requires $24.3 million more in tax dollars.
Under the proposed budget, the county would need $305 million in taxes, about 9 percent more than the $281 million in taxes needed for the current fiscal year.
County officials must find $7.7 million in revenues to trim that tax hike and meet the state-required tax increase cap. State regulations permit an increase of $16.6 million in taxes to support the proposed budget.
Although the proposed spending package is less than the current $397 million budget, the tax levy would increase because of reduced revenues. In the lagging economy, the drop in housing sales resulted in the county receiving $4.3 million less in transfer fees than anticipated in 2008.
County administrator John Pulomena said the county must make up that shortfall and reduce estimates for property fees for the next budget year, for a total shortage of $8.6 million.
Pension contributions for county employees are up $2.7 million to $14.9 million, and health insurance costs jumped $1.8 million to $42.1 million.
County leaders plan on cutting the payrolls by not filling vacant positions and eliminating some vacant posts. Also, there will be a salary freeze, a message that Pulomena said is being conveyed to all 23 county employee unions that have contracts expiring this year. The allocations for overtime are also being cut by $200,000.
County budget director Al Kuchinskas said the county will save more than $900,000 by not filling or eliminating positions.
The county expects to get a revenue shot of more than $3.5 million from the sale of its Civic Center parking deck under City Hall to the New Brunswick Parking Authority.
Authority executive director Mitchell Karon said his agency wants to purchase the parking spaces used by the county as part of a larger development plan to provide additional parking in the downtown area. Karon said the county could lease the spaces it needs.
Pulomena acknowledged that sale of the deck would be a one-time source of revenue.
Middlesex County also is seeking funds through an agreement to house Monmouth County's juvenile offenders in the Middlesex County Juvenile Detention Center in North Brunswick.
Pulomena and Deputy Freeholder Director Chris Rafano said Monmouth County is looking to cut its costs for juvenile offenders.
The Middlesex County juvenile facility already takes juveniles arrested in Somerset County and has the capacity to handle additional juveniles, Rafano said.
Similarly, Pulomena said the county is investigating interlocal agreements involving the Middlesex County Medical Examiner's Office.
Pulomena said the county must still find another $1 million in either cost cuts or additional revenue to get under the state cap for tax increases.
Despite the increase in the tax levy, county officials said they have not yet determined if there would be a hike in the equalized tax rate. For more than 10 years the county has reduced the rate because the tax base has continued to grow through residential and commercial development. The growth offsets the spending increases.
County officials plan to introduce the budget next month.
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