Town Will Handle Flat State Aid Number with a ‘Conservative’ Budget Approach

With Bernards Township's annual aid from the state staying at 2010 levels, Mayor John Malay does not expect the latest numbers to have any significant impact on the 2011 municipal budget.

“We take a very conservative approach. We assume state aid is going to go down or be very low. By being conservative and maintaining cash reserves, we are prepared. We will move forward without any change at this point,” Malay said, noting that the budget process began in September.

State mayors – including Malay – were alerted to the numbers in a conference call prior to Gov. Chris Christie’s budget address Monday. The numbers were made public late yesterday and 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, the same as 2010.

“Originally, we were expecting the aid numbers to go down further,” Malay said. “It’s better news that we are staying flat in state aid.”

“On the other hand,” he continued, “given the amount of money we send to Trenton, we are very much short-changed when it comes to getting funding.”

While the aid figure remains constant, Malay acknowledged that costs in general are expected to rise due to inflation.

“Plus, the state keeps raising our mandated contributions in areas such as the pension fund and health care costs. The state gives with one hand and takes with the other,” he said.

In his address, Christie said, "And also in the context of property taxes, this year’s budget continues to provide municipalities with steady aid. That's right, mayors – at the exact same level as last year. So there is no excuse for this relief to be eaten up with higher local taxes, between receiving no further cut in municipal aid, and implementing a 2% cap on property taxes."

Terri Johnson, township treasurer, reported that state aid for 2009 had been close to $2.3 million.