So this is Corzines idea to cut spending: State aid to towns dropping sharply (but lets keep the fat)

Brilliant mind (not..) that Corzine. His goal is to transfer state fiscal responsibility to the individual towns by cutting aid... which in turn means our taxes will go up. Come election day which he doesn't have a prayer for re-election, he'll say that he listened TO US, and cut spending as we demanded.

As state officials released data showing that property taxes rose by an average of 5.4 percent in 2007 — the lowest rate in four years — they also detailed municipal aid cuts that are likely to put more pressure on the local levies in 2008.

The 2007 data from the Department of Community Affairs showed the average New Jersey property tax bill grew to $6,796 in 2007, up from $6,446 the previous year.

The data is the first measure of the effectiveness of a property tax cap lawmakers and Gov. Corzine instituted early last year. The cap set maximum annual property tax increases at 4 percent, but included exceptions that allow the taxes to rise by more than that amount.

Average property taxes had grown by about 7 percent annually since 2004. In 2003 they rose by about 4.5 percent.

However, the administration also detailed $168 million in municipal aid cuts Tuesday, the bulk of Cor-zine's proposed $190 million reduction in overall support for towns and cities. The reduction is 9.6 percent of the total aid distributed in 2007.

Twenty-seven municipalities in Monmouth and Ocean counties that received municipal property tax relief aid last year will receive none this year.

With less state aid, municipalities will have to try to make up for the losses by saving elsewhere — potentially cutting services — or increasing property taxes.

Corzine has targeted small municipalities, those with fewer than 10,000 people, for aid reductions to encourage town mergers and service sharing, which he has said would lead to more efficient government.

"Oh, dear," said Roosevelt Mayor Elsbeth "Beth" Battel when told the news of the total loss of municipal aid for 2008. The borough received $44,738 in 2007.

"I would say I'm stunned," Battel said. "I don't know how we're going to make our budget."

Battel suggested consolidating services with another municipality. But that probably could not be accomplished in time for the 2008 budget, Battel said.

"To a small town like Ocean Gate, it's devastating," Mayor Paul J. Kennedy said. "Where does it leave the taxpayer at this point? I'm not happy with it. What the governor has done to small towns is tough. It's more devastating to cut the aid in small towns than big ones. The picture isn't bright for small towns."

Large towns hit, too

Larger municipalities, such as Howell and Middletown, also are affected. Howell's aid allotment will be $927, compared with $476,481 last year. Township Manager Helene Schlegel said the cut equals almost a penny on the local tax rate.

"I'm certainly not surprised, quite frankly, with the state of the state's finances," said Howell Mayor Joseph DiBella.

"In general in New Jersey, more government jobs have been added to the payroll than in the private sector," DiBella said. "This leads to enormous costs in health and pension benefits. We have to find a way to reinvent how government does business."

Middletown would see its property tax relief cut by 29 percent, to $936,999. Overall, the amount the township would receive from the state in 2008 would go down by $634,511.

"This is a lot more extreme than we thought," said Richard Wright, the township's chief financial officer, who anticipated that Middletown would see a cut of a little more than $100,000.

Mayor Gerard Scharfenberger said he considers it unfair for the state to cut funding but to also require municipalities to increase their spending in various areas, such as pension obligations and library costs.

Keyport Mayor Robert J. Bergen said the aid cuts reflect a fundamental change in the way New Jersey government will be required to operate.

"They (state) does not want to pay for it anymore, and as the governor said in his speech, government is not only going to learn to do more with less, but that it (state) is going to do less," he said.

Corzine spokeswoman Lilo Stainton said the cuts are aimed at encouraging a "streamlined" government.

"There are just too many local governments, and their services often duplicate one another," Stainton said. "It should not necessarily mean higher taxes for local residents. Just as the state is looking to become a leaner, more efficient government, local officials can use those same techniques to reduce costs for local taxpayers."

More upset officials

But at a Township Council meeting Tuesday night, Brick Councilman Anthony Matthews said, "Nobody at the state level wants to make the decisions necessary. They're going to put the burden all on us (municipalities)."

Point Pleasant Beach Mayor Vincent Barella said that government on a municipal level is the most accountable to taxpayers, and small towns should be given the ability to raise revenue on local and tourist taxes.

"Trenton needs to surrender control. They need to look at what they're doing and give municipalities the chance to raise their own revenue," Barella said.

In Seaside Heights, Borough Administrator John A. Camera said, "It's really disappointing, and it's going to be a real pain and burden to the taxpayers."

"Towns with a population of less than 5,000 to 10,000 got hit the hardest," Camera said. "If it was across the board, it would be one thing. But giving money to big cities like Camden and Newark that are poorly managed is really hard to swallow."

While many of the state's largest cities are losing large amounts of raw dollars — Newark sees the biggest cut, $6.7 million — their percentage of reductions are relatively small. The state's most populous towns, including Newark, Edison and Woodbridge, are all slated to lose between 4 percent and 7 percent of their aid.

In Farmingdale, which has held annual municipal tax rate increases to an average of 1 to 2 cents, the disappearance of state aid will result in an estimated 8.5-cent increase, to 22.7 cents per $100 of assessed property value, according to Mayor John P. Morgan.

"I'm not sure the people will accept that (rate), but I don't (know) where to cut," Morgan said. "It's not like we waste money here."

Morgan said the governor's decision sends a message that the more capable towns are being penalized for keeping frugal budgets.

Shared-services proponents

Tuckerton will likely be forced to compensate for the loss of municipal aid with an increase in the local tax levy next year, said Mayor Lewis E. "Lee" Eggert.

The cuts in aid will steer smaller towns like Tuckerton toward shared services and, ultimately, consolidation, Eggert said. In 2007, he pushed for more shared services between area municipalities but met resistence from residents and other elected officials.

"I'm a fan of (shared services), but you do have to maintain the character of the town," Eggert said.

Barnegat is also looking to shared services as a long-term solution, Mayor Jeffrey Melchiondo said.

"I think everybody expected what was coming, we just didn't know how much," Melchiondo said of the cuts. "Why should you have duplicate and triplicate (services) when you could put them together and save everyone a penny or two?"

Already the township partners with neighboring Waretown to store street sweeping spoils, and more programs with Stafford and the Barnegat School District are on the horizon, Melchiondo said.

Keyport Mayor Bergen is not optimistic, though, that municipal consolidation will yield significant economies.

"We watch every dime here; I'm not so sure that a bigger entity is going to be that more efficient," he said.

APP