Saturday, February 13, 2010


This past week the Governor addressed the legislature on the status of New Jersey's fiscal status. Among the cost savings measures he said must be implemented even if he has to do it by fiat was the following which of course aroused the ire of the state, employees, police, fire, and teachers "

"The total unfunded pension and medical benefit costs are $90 billion. We would have to pay $7 billion per year to make them current. We don’t have that money—you know it and I know it. What has been done to our citizens by offering a pension system we cannot afford and health benefits that are 41% more expensive than the average fortune 500 company’s costs is the truly unfair part of this equation." Governor Christie

The Governor also mentioned a significant decease in all State funds allocated to municipalities.From the numbers which were printed as in the past year and proposed reductions the amount must include School funds as well as municipal social services grants. (Unfortunately I have misplaced the newspaper printed table.)

Monday, the last day of a holiday weekend will end with snow. Tuesday, the City gets back to operational status. There will be a special Board meeting at 8:PM to adopt the proposed budget as amended. Since a temporary budget for March has already been approved, The 2010 budget will not impact on this years spending since by the time it becomes effective most of the fiscal year has become history.

Councilors Reid and Storch have both commented that the work on the 2011 FY budget should start immediately after this one becomes official. The target should be July 1, 2010. State Aid to Plainfield will be cut by approximately $950,000.00 according to a recent newspaper table. If more or less dollars are forthcoming the budget can be amended by Council action to reflect the impact on the budget .

Extraordinary aid is awarded to cities and towns that, because of extreme or unusual financial circumstances, would not be able to provide essential public services without a substantial increase in their property tax rate. Any increased funding should come from extraordinary aid which can not be anticipated and should not be factored into a proposed budget although usual and customary aid can be estimated based on previous year.

In the 2009 budget year ,Perth Amboy received $3.5 million, East Orange $2 million, Irvington $2 million, Weehawken $1.2 million, Passaic $1 million, Hillside $900,000, Orange $500,000, Lawnside $450,000, West New York $450,000, Guttenberg $360,000, Lake Como $350,000, Plainfield $250,000, Roselle Borough $250,000, Ewing $250,000, Gloucester Township $250,000, and Union Beach $120,000.

What type municipalities are Lawnside,Guttenberg, Lake Como that they rate more than Plainfield?

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