TRENTON — To help close an unexpected budget gap, the state plans to withhold $20.7 million in aid payments to municipalities, a move that could force cuts in services or higher property taxes, according to three legislative sources briefed on the move.
The decision to place the final aid installment in reserve rather than distribute it to towns is expected to be announced by the Corzine administration Tuesday along with other budget-trimming moves, according to the sources, who requested anonymity because they were not authorized to discuss it.
The payment represents 5 percent of the total annual aid authorized for municipalities under the Consolidated Municipal Property Tax Relief Act. But that is enough to throw into turmoil the budgets of more than 400 towns that prepare their budget on the calendar year schedule, forcing them to scramble for last-minute cuts, said William Dressel, executive director of the state League of Municipalities.
“There are towns that are going to be confronted with a serious cash flow problem,” said Dressel, who fears that other municipal aid accounts could also be cut. “I’m very much concerned that this is just the first salvo of many more to come.”
Spokesmen for Gov. Jon Corzine and Treasurer David Rousseau did not return calls seeking comment today. Corzine has asked his departments to deliver $400 million in cuts by Tuesday.
One key lawmaker, Sen. Paul Sarlo (D-Bergen), said the decision is poorly timed, because the towns left with a year-end deficit will have to build tax increases into their budgets for next year. Sarlo, the incoming chair of the Budget and Appropriations Committee, said he’s also concerned about the state’s legal obligation because it has approved the municipal budgets and certified their state aid.
follow the link for the rest of the story ….
Statehouse Bureau reporter Lisa Fleisher contributed to this report.
Municipalities brace for steep cuts in state aid By Star-Ledger Staff November 29, 2009, 10:45AM
In Hope Township, Mayor Tim McDonough said he’s considering cuts to “sacred cows” like money for senior groups, food banks and recreation programs.
Paterson Mayor Jose Torres said the city may trim budgets for police and fire protection.
All across New Jersey, municipal officials are faced with grim cost-cutting choices as they brace for the possibility of unprecedented cuts to state aid by year’s end, leaving them little room to maneuver.
Jennifer Brown/The Star-LedgerGov. Jon Corzine delivers his 2009 budget speech to a joint session of the New Jersey Legislature.
Gov. Jon Corzine said Thursday he might give towns only a portion of a planned December payment to help patch a growing budget deficit that now stands at $1 billion.
Faced with strained finances, municipalities are already scrambling for savings as they struggle to keep their heads above water, experts and government officials say.
“This isn’t like the good old days, when you adopted the budget and you waited until the following June to put together another budget,” League of Municipalities Executive Director William Dressel said. “Now we’re going month to month, week to week.”
On Wednesday, the state revealed it may freeze up to $400 million in payments to municipalities, schools, higher education, hospitals and pensions.
To cope, towns could lay off workers, borrow money, cut services or spend surpluses. Next year, they may have to raise property taxes to compensate, Dressel said.
Corzine hasn’t said where he’ll cut, but local leaders are holding their breath.
New Jersey municipalities have relied on regular state assistance to fund services since the early ’90s, said Mary Forsberg, who leads New Jersey Policy Perspective. That keeps property taxes, already among the highest in the country, from rising even faster.
“I’ve been through a lot of these budget crises,” Forsberg said. “This is the most serious of any of them that we’ve had.”
Municipalities have already been cutting costs in ways big and small.
New Brunswick eliminated 25 full-time jobs in 2008, then another eight this year. Mount Arlington shares its municipal court with four other towns. In Lambertville, metered parking is in effect three hours longer and the city has imposed a $35 fee for what had been free trash collection.
More cuts like those being weighed in Paterson and Hope Township are still possible, but Forsberg criticized local officials for not cutting more.
“Municipalities are complaining a lot about their situations, but I don’t think many municipalities have really seriously tightened their belt,” she said. “Reality has not sunk in.”
FROM BAD TO WORSE
Bad financial news has been constant background music since Corzine took office in 2006. Falling revenues helped drive down the state’s budget from $33.5 billion in 2007 to $29 billion this year.
Corzine is asking his departments to come up with $400 million in spending cuts by Tuesday, but the state also says it needs $350 million in additional spending, according to a financial disclosure statement released last week.
Tax revenue through the year is off more than $412 million, though two big payments are still pending: holiday sales tax and April income tax.
Gov.-elect Chris Christie, who takes office Jan. 19, said the budget gap is his first priority, saying: “The news of the last 48 hours just shows how desperately out of control government has been in New Jersey.”
Christie’s transition team is scheduled to meet for a second time with Treasury officials next week, and there are already signs of disagreement. Rich Bagger, one of Christie’s top fiscal advisers, said the $350 million in extra spending is unacceptable.
“These budget shortfalls make it clear that the Corzine administration must take urgent and immediate action to bring the budget under control,” he said in a joint statement with Robert Grady, another Christie adviser.
The spending includes items such as Medicaid waivers from the federal government that have not yet come through, Bagger said.
Treasury representatives, who were furloughed Friday in a cost-cutting measure, did not return messages.
FOGGY FORECAST
The state promised $1.77 billion in municipal aid this fiscal year, down from $1.83 billion in the fiscal year that ended in June. Municipalities use the money to fund anything from police and sanitation to health programs and public employee salaries, Dressel said.
Bradley Abelow, Corzine’s former treasurer, said there have always been mid-year budget adjustments at the departmental level, but the economic crisis has stumped forecasters.
“In the past, they’ve been off a little bit, but over the last two years (revenues) have been much harder to project,” he said.
Officials across the state rely on the state’s projections and commitments to plan their budgets, which causes a ripple effect when goals aren’t met.
New Jersey is likely to face more financial pain. In the last fiscal year, the state’s shortfall grew to $4 billion by June. The state is legally required to keep a balanced budget, so state leaders raided rainy day funds and dedicated revenue sources, took millions in federal aid and delayed worker pension and school aid payments.
They also cut department spending and delayed a state employee salary increase.
“No matter how pessimistic the revenue estimates are, they turn out to be not pessimistic enough,” said Jon Shure, deputy director of the Center on Budget and Policy Priorities.
By Chris Megerian and Lisa Fleisher/The Star-Ledger
John Reitmeyer and Mike Frassinelli contributed to this report.
>You get what you pay for. If you want second rate teachers with a high turn over, then pay less and reduce benefits. If we want our schools to be nothing more than day care centers with minimum wage workers your taxes will be reduced. However, the value of you house will also be reduced. Even if you don’t have children in the school system this will cost you in the long run. I think the BOE has made some poor business decisions and that the administration is top heavy. BUT, I still believe that we get above average service from the hands on class room teachers.
Don’t forget, no one is breaking down the school house doors in the nation looking for teaching jobs. Most of us in Ridgewood could not afford to live on $100,000 a year, even with the top level health benefits and a good pension.
>Ladies Night Out Networking: Holiday Baking Mon, December 07, 2009 Time: 6:30 PM – 8:30 PM Location: Ridgewood Culinary School, 223 Chestnut Street, Ridgewood Cost: $35 per person
You are invited to Networking – Holiday Baking Style Food provided by Whole Foods Market Chefs Nancy and JoMarie
While you are Networking, enjoy cooking, eating and take home goodies to share at the office and/or home.
$35 per person. Reservations only, limited space. Door prizes! Bring your favorite wine to share a glass with someone else. Do not forget the business cards and 30 second commercial.
RSVP to the Chamber Office, (201) 445-2600 or email [email protected].
Networking in Ridgewood Tue, December 08, 2009 Time: 5:30 PM – 7:30 PM Location: Artis Gallery, 11 Prospect Street, Ridgewood Cost: $10 per person
Start the holiday season by networking your business! Enjoy wonderful hors d’oeuvres, beverages and a lot of holiday spirit!
FREE PARKING AFTER 6PM.
Cost: $10 members; $15 non-members
Please RSVP to the Chamber by 12/7. Call (201) 445-2600 or email [email protected].
>We thought your readers might want to know about a promotion we are running this Holiday season. We are giving prizes away amounting to over $2000 over as 12 day period. Starting on Monday 11/30 and ending on Saturday 12/12 we will be raffling off one prize each day. We attached our ad that ran in the Record this week.
“On the First Day of Christmas Irish Eyes gave to me…..” NOV 30th………Belleek CELTIC MINI CACHE POT 2009 Annual Piece $40 DEC 1st…………………………..Belleek ARTIST SIGNED KILKENNY CASTLE $45 DEC 2nd………………………………………..Men’s OR Women’s WOOL SCARF $49 DEC 3rd……………………………………………..ORNAMENT of CHOICE Up To $79 DEC 4th………………………………WATERFORD MARQUIS Quadrata Bowl $99 DEC 5th………………………MULLIGAR PEWTAR Tankard with Shamrock $100 DEC 7th………….….WATERFORD Mondavi Pinot Noir Set with Carafe $100 DEC 8th………………………………………FOUR BELLEEK Trademark Mugs $120 DEC 9th………………………………SOLVAR Sterling Silver Heart Pendant $128 DEC 10th…………………MEN’s or WOMEN’s Fisherman Wool Sweater $175 DEC 11th………………………………………………..BRANNIGAN’s TARA CAPE $215 DEC 12th…………………………………………..14K GOLD CLADDAGH RING $575
Merry Christmas and Happy Holidays from everyone at Irish Eyes.
Sláinte,
Tara and Gene Callaghan Celtic Pride LLC dba Irish Eyes Imports Ltd 1 Cottage Place Ridgewood, NJ 07450 201.445.8585 – Phone 201.445.8597 – Fax [email protected] www.celticpride.com
>Holiday Bazaar to benefit The Preserve Graydon Coalition Sunday, November 29, 2009 10 AM–4 PM 250 North Maple Avenue, Ridgewood (private home, directly across Maple from the Stable) Free admission
What you’ll find: “Save Graydon Pool” car magnets and “Keep Graydon Natural” lawn signs
Christmas/holiday cards featuring Graydon ice skating scene by Dorothy Warren (custom imprinting available);
original oil paintings by late Ridgewood artist Dorothy Warren (above: “Roses in Abundance”)order Cheesecake Aly cheesecakes, choc. chip cookies for delivery Dec. 19
The Key lime is crustless, sugar free, and gluten free—delicious for all! photos of Ridgewood’s downtown clock in all seasons, matted for framing delicate origami constructions, original jewelry, unique pottery home-baked cookies, Dove Chocolate Discoveries Christmas ornaments, wreaths, flameless candles And much more from over 20 vendors!
Park on Mastin Pl., Brookmere Ct., or Meadowbrook Ave. (or other streets off Maple) or in the Stable parking lot.
If you are volunteering at the bazaar, please leave the best parking spots for customers.
See you at the bazaar, 10am–4pm, Sunday, Nov. 29, at 250 N. Maple Ave. Note: Many vendors require cash or check.
Swimmingly, Marcia Ringel and Suzanne Kelly, Co-Chairs The Preserve Graydon Coalition, Inc., a nonprofit corporation “It’s clear—we love Graydon!” [email protected] www.PreserveGraydon.org
The year that is drawing towards its close, has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature, that they cannot fail to penetrate and soften even the heart which is habitually insensible to the ever watchful providence of Almighty God. In the midst of a civil war of unequaled magnitude and severity, which has sometimes seemed to foreign States to invite and to provoke their aggression, peace has been preserved with all nations, order has been maintained, the laws have been respected and obeyed, and harmony has prevailed everywhere except in the theatre of military conflict; while that theatre has been greatly contracted by the advancing armies and navies of the Union. Needful diversions of wealth and of strength from the fields of peaceful industry to the national defence, have not arrested the plough, the shuttle or the ship; the axe has enlarged the borders of our settlements, and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore. Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege and the battle-field; and the country, rejoicing in the consiousness of augmented strength and vigor, is permitted to expect continuance of years with large increase of freedom. No human counsel hath devised nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God, who, while dealing with us in anger for our sins, hath nevertheless remembered mercy. It has seemed to me fit and proper that they should be solemnly, reverently and gratefully acknowledged as with one heart and one voice by the whole American People. I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens. And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquillity and Union.
In testimony whereof, I have hereunto set my hand and caused the Seal of the United States to be affixed.
Done at the City of Washington, this Third day of October, in the year of our Lord one thousand eight hundred and sixty-three, and of the Independence of the Unites States the Eighty-eighth.
By the President: Abraham Lincoln William H. Seward, Secretary of State
>Regarding the teachers benefits for health care plan, transition to a managed care plan likewise known as a HMO, will be made by the end of 2009. Back in March of 2009, an agreement concession for a transition grace period was made by the State Health Benefits Commission and the NJEA, for active and retired teachers. The concession will allow them to delay moving into the cheaper managed care health care plan Horizon Blue Cross PPO, from their more expensive plan, until the end of this year 2009. About time, join the rest of us. Past reference news article..
Your suggestion for a freeze on salaries, should be given consideration, even though our BOE acknowledges the state of the economic recession, they made no concessions this year with regard to salary increases. Its beyond comprehension of what justifies, (aside it being tenure) why many of our Kindergarten to 8th grade teachers salary ranges are $100,000.00. For example, Travell, K-8 has 2 each @ $102,000.; 1 @ $106,000.; 1 @ $90,000.(Kindergarten); Somerville K-8 has 2 each @ $102,000.; Hawes K-8 has 5 @ $102,000.; and 1 Kindergarten @ $102,000.
With all due respect, acknowledging the fact, many teachers have Masters degrees, you have to ask what Do You Really learn in Kindergarten that requires a public paid teacher at this substantial sum $102,000.? In this respect, the tenure system has lead to overqualified and overpaid positions which was intended to be a Public system and not a private system. In the private business world, when one reaches a “salary ceiling” for a position, they are considered overqualified and overcompensated for further raises.
On the proposed $48 Million Budget, everyone should look at this spreadsheet of costs projected over the next 25 years, on the boe site, with regard to the yearly school percentage tax rate, it increases within a couple years, and does not stay at the $37.47 per $100,000 assessed value. Proceed with caution.
As the Thanksgiving holiday approaches, many of us begin to ponder the things for which we are thankful. This year has been a particularly tough one for the economy and for Congress:
Over 120 banks have failed this year, and continued bailouts have seen the government become a significant shareholder in multiple banks, as well as a majority of the American auto industry. The House of Representatives passed a failed stimulus package to the tune of $787 billion, along with Cap-and-Trade legislation which many say will kill jobs and a trillion dollar health care package. The Financial Services Committee is also considering a bill that will establish a permanent bailout fund to continue to bail out failing financial companies. I was concerned about this in January (see my January 27th Garrett Gazette, “Incurring Massive Debt is Not a Stimulus Plan”), as I believe massive spending does little to stimulate economic growth. I even wrote a letter to President Obama on January 27, encouraging him to consider additional stimulus options. Unfortunately, Congress passed a “stimulus” that has done nothing to stimulate the economy, and we are currently facing an unemployment rate that is over 10%.
You may ask what this has to do with Thanksgiving. I am writing to let you know that what I am thankful for this Thanksgiving: I’m thankful that it’s not too late to fix our economy. It’s not too late to turn the unemployment trend around. It’s not too late to stop contributing to our country’s massive debt. We’re in a hole right now, so let’s stop digging.
As Congress explores options of yet another stimulus, I would encourage my colleagues to consider an option we haven’t tried yet: tax relief for small businesses that will enable them to create jobs for Americans.
In January, I introduced H.R. 470, The Economic Recovery and Middle-Class Tax Relief Act, an economic stimulus package designed to provide short-term stimulus, while encouraging long-term economic growth.
This legislation focuses on broad, growth-oriented, permanent incentives for economic activity across all sectors and industries, with immediate application and sustained, long-term implications. Provisions center around three main themes: support for families through tax relief, economic relief for American businesses and entrepreneurs, and protection for future generations from a crushing debt burden.
I’m sure that by now, you’ve seen the stories about the millions of stimulus dollars that went to create jobs in congressional districts that don’t exist (i.e. New Jersey’s 80th district – as a reminder, we only have 13 representatives. See the Wall Street Journal editorial, “The Phantom Jobs Stimulus: ‘Who knows, man, who really knows’” for an in depth discussion of this issue). Rather than spend taxpayer dollars on programs the government might have great difficulty administrating effectively, The Economic Recovery and Middle-Class Tax Relief Act is a tax relief program which allows businesses and individuals to keep more of their own money. I have confidence that you know how to manage your money more effectively than the government does.
I will continue to work to protect your taxpayer dollars from government abuse: I have opposed ALL bailouts, as well as Congressional spending that grows our federal deficit. I will also continue to work with my colleagues to propose taxpayer-friendly alternatives. With your continued support, we can spread the message of fiscal responsibility throughout Washington, DC. It’s not too late to fix our economy, but we need to act now to change our course.
Each year at this time school children all over America are taught the official Thanksgiving story, and newspapers, radio, TV, and magazines devote vast amounts of time and space to it. It is all very colorful and fascinating.
It is also very deceiving. This official story is nothing like what really happened. It is a fairy tale, a whitewashed and sanitized collection of half-truths which divert attention away from Thanksgiving’s real meaning.
The official story has the pilgrims boarding the Mayflower, coming to America and establishing the Plymouth colony in the winter of 1620-21. This first winter is hard, and half the colonists die. But the survivors are hard working and tenacious, and they learn new farming techniques from the Indians. The harvest of 1621 is bountiful. The Pilgrims hold a celebration, and give thanks to God. They are grateful for the wonderful new abundant land He has given them.
The official story then has the Pilgrims living more or less happily ever after, each year repeating the first Thanksgiving. Other early colonies also have hard times at first, but they soon prosper and adopt the annual tradition of giving thanks for this prosperous new land called America.
The problem with this official story is that the harvest of 1621 was not bountiful, nor were the colonists hardworking or tenacious. 1621 was a famine year and many of the colonists were lazy thieves.
In his ‘History of Plymouth Plantation,’ the governor of the colony, William Bradford, reported that the colonists went hungry for years, because they refused to work in the fields. They preferred instead to steal food. He says the colony was riddled with “corruption,” and with “confusion and discontent.” The crops were small because “much was stolen both by night and day, before it became scarce eatable.”
In the harvest feasts of 1621 and 1622, “all had their hungry bellies filled,” but only briefly. The prevailing condition during those years was not the abundance the official story claims, it was famine and death. The first “Thanksgiving” was not so much a celebration as it was the last meal of condemned men.
But in subsequent years something changes. The harvest of 1623 was different. Suddenly, “instead of famine now God gave them plenty,” Bradford wrote, “and the face of things was changed, to the rejoicing of the hearts of many, for which they blessed God.” Thereafter, he wrote, “any general want or famine hath not been amongst them since to this day.” In fact, in 1624, so much food was produced that the colonists were able to begin exporting corn.
What happened?
After the poor harvest of 1622, writes Bradford, “they began to think how they might raise as much corn as they could, and obtain a better crop.” They began to question their form of economic organization.
This had required that “all profits & benefits that are got by trade, working, fishing, or any other means” were to be placed in the common stock of the colony, and that, “all such persons as are of this colony, are to have their meat, drink, apparel, and all provisions out of the common stock.” A person was to put into the common stock all he could, and take out only what he needed.
This “from each according to his ability, to each according to his need” was an early form of socialism, and it is why the Pilgrims were starving. Bradford writes that “young men that are most able and fit for labor and service” complained about being forced to “spend their time and strength to work for other men’s wives and children.” Also, “the strong, or man of parts, had no more in division of victuals and clothes, than he that was weak.” So the young and strong refused to work and the total amount of food produced was never adequate.
To rectify this situation, in 1623 Bradford abolished socialism. He gave each household a parcel of land and told them they could keep what they produced, or trade it away as they saw fit. In other words, he replaced socialism with a free market, and that was the end of famines.
Many early groups of colonists set up socialist states, all with the same terrible results. At Jamestown, established in 1607, out of every shipload of settlers that arrived, less than half would survive their first twelve months in America. Most of the work was being done by only one-fifth of the men, the other four-fifths choosing to be parasites. In the winter of 1609-10, called “The Starving Time,” the population fell from five-hundred to sixty.
Then the Jamestown colony was converted to a free market, and the results were every bit as dramatic as those at Plymouth. In 1614, Colony Secretary Ralph Hamor wrote that after the switch there was “plenty of food, which every man by his own industry may easily and doth procure.” He said that when the socialist system had prevailed, “we reaped not so much corn from the labors of thirty men as three men have done for themselves now.”
Before these free markets were established, the colonists had nothing for which to be thankful. They were in the same situation as Ethiopians are today, and for the same reasons. But after free markets were established, the resulting abundance was so dramatic that the annual Thanksgiving celebrations became common throughout the colonies, and in 1863, Thanksgiving became a national holiday.
Thus the real reason for Thanksgiving, deleted from the official story, is: Socialism does not work; the one and only source of abundance is free markets, and we thank God we live in a country where we can have them.
* * * * * Mr. Maybury writes on investments.
This article originally appeared in The Free Market, November 1985.
Imagine your child going off to college and you give him or her a credit card with an unlimited credit limit. Each month the bill comes in and each month your little high-roller is spending as though he or she has no responsibility for paying the bill. As a matter of fact your child doesn’t have to pay; you do.
Next week during Thanksgiving break you decide you need to set down your child and explain that this unlimited spending must be stopped because the debt is becoming so large that you will not be able to pay it off and all you have will be lost.
You pick the perfect moment, take your collegian into your office, and show your prodigal all the spending that has left you on the brink of bankruptcy. The apple of your eye looks at you, listening intently and finally says,
Dad, it is important though to recognize if we keep on adding to your debt, even in the midst of this economic recovery, that at some point, your creditors could lose confidence in your ability to pay back this debt.
Do you think to yourself, “My goodness this college stuff is really catching on with my child. Look at how much he has already learned about economics!”
No, you don’t think that; you think, “I need to take a walk so I don’t wring his scrawny, irresponsible neck!” (Figuratively speaking, that is)
Undoubtedly the frustration of a parent with a spendthrift child running up his credit card debt requires immediate action, such as taking away the credit card.
That was my feeling yesterday watching Barack Obama’s interview with Major Garrett of FOXNews.
The most amazing part of that interview was that Obama said the following with a straight face:
I think it is important though to recognize that if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a way that could actually lead to a double-dip recession.
My question for Barack Obama is, “Who do you consider as ‘we’?”
