UPDATED: State Reportedly Promises Municipal Aid Will Stay Same as 2010, No Word on School Aid

Hours before Gov. Chris Christie gave his annual budget address, the state's mayors were invited onto a conference call with another state official during which Mayor John Malay said he was told Bernards Township's annual aid from the state will remain the same as in 2010.

Meanwhile, school officials said they had heard nothing about school aid figures for the 2011-12 school year. School Board President Susan Carlsson said those figures should be released within 48 hours. 

"Technically speaking, it's good news," Malay said on Monday afternoon of the conversation regarding municipal funding. "I thought we were going to get another cut." Township officials previously said they would fear the effect on the 2011 municipal budget if state funding for the township dropped from last year's level.

Last year's state aid — technically the state's return of a portion of the energy receipts tax collected in the township — added up to $1.8 million, said Terri Johnson, township treasurer. State aid for 2009 had been close to $2.3 million, she said.

The governor in his speech also said he would increase state aid to all school districts. However, Schools Superintendent Valerie Goger responded in an email shortly after 4 p.m. that she had received no word yet when asked if the state had discussed any specifics.

Carlsson said she had informally heard that the school districts cut the most last year would this year receive the largest increases. However, she said the district still expects to receive aid far below what was received two years ago.

Last spring, Christie announced state aid cuts to most of the state's school districts. The Bernards Township School district's school aid was reduced to about $835,000 for 2010-11. The district had received just over $3 million in school aid for the 2009-10 school year, although the state had later withheld $1.6 million of that amount when the governor announced last winter that the state was in the midst of a financial crisis.

"Even if we get an increase, we don't know what the year after will be," Carlsson said. She said school officials would want to know if they are able to build the larger aid amount into the school budget on a permanent basis.

Malay said the governor's budget address still left some issues unaddressed. He said Christie's budget cutting "really needs to be couple with meaningful property tax relief."

Malay added the state's residents and municipalities also have not heard "anything substantive on pension reform." The Bernards Township mayor said that township employees at town hall are on their own as far as health care benefits when leave the township's employment. "State employees get lifetime benefits," the mayor said. 

Meanwhile, as the township and school district get ready to prepare annual budgets that must hold the line at a 2 percent increase on spending of tax dollars, the governor has yet to release his promised advice for "best practices" in holding the line on spending, Malay said. Those guidelines would be the so-called "toolbox" that Trenton is expected to issue.

The township will be fashioning a budget for 2011 without knowing what happens in such situations as if, for example, the local police union is awarded salary increases of above 2 percent in upcoming contract talks, Malay noted.

Malay said as many New Jersey mayors as possible were earlier on Tuesday called onto a 10:30 conference call with Lori Grifa, commissioner of the state Department of Community Affairs.