March 26, 2008

A Message to New Providence Residents

A Message to New Providence Residents Governor’s Cuts in State Aid May Affect Local Taxpayers By: Mayor John A. Thoms

Recently the State of New Jersey notified all municipalities of their state aid figures for the 2008-2009 fiscal years. In New Providence, we learned that our state aid would be reduced by $172,000.

Upon learning of the $172,000 reduction in state aid, the Borough Council adopted the attached resolution opposing the governor’s proposed budget. This resolution expresses our concern about shifting obligations from the state to local municipalities. We strongly believe this places an unfair tax burden on our residents. The loss of this state aid, coupled with increased pension costs, the financial impact of commercial tax appeals, increases in health insurance, electricity and oil dependent products, will have a significant impact on the 2008 municipal budget.

This budget proposal marks the seventh straight year where the NJ Legislature under-funded municipal property tax relief programs. This is in direct conflict with NJ Statues that require annual inflationary adjustments in those programs.

The Borough Council has been reviewing our Borough operations looking for consolidation and cost savings while maintaining current service levels. Unfortunately I’m not sure it will be possible to maintain all the services we currently provide without a consequential tax increase. For years, the Borough has operated efficiently with lean staffing and resources. Unfortunately, this means that any cuts will result in loss of services. At this point, we are trying to determine which services can be cut with the least impact to the majority of our residents.

The attached resolution has been forwarded to the governor as well as our Union County delegation. We hope the governor will reconsider his cuts in state aid to help lessen the impact to lour local residents.

Click here for Borough Council resolution

Click here for Kean response letter