Debate continues over late budgeting process
BY VINCENT TODARO
Staff Writer

EAST BRUNSWICK - Though the township will soon find out how much extraordinary state aid it will receive this year, there remain questions about the budget process the township follows.

In past years, the administration was criticized by then-GOP Councilwoman Christi Calvano for bringing the municipal budget in so late in the year, after many expenditures had already been made. When Calvano decided not to run for council again, Democratic Councilman David Stahl took up the cry, asking the budget be brought to council earlier.

Residents have joined in the outcry too, leaving the administration to do some face saving when it comes to explaining why the budget is brought in so late and outside of state law. The issue came up again during the June 11 council meeting, when finance director L. Mason Neely claimed the township would lose any extraordinary aid should the budget be adopted sooner. That statement was confirmed by the state Department of Community Affairs (DCA).

This year, the township requested $800,000 in extraordinary aid.

Neely said part of the reason the township does not introduce and adopt its budget earlier is because of scheduling conflict with the state. The state's fiscal year does not run the calendar year, as does the township's - which is why the state does not provide extraordinary aid figures to municipalities until as late as the summer.

In fact, he claimed if the town were to adopt its budget sooner, it would lose the aid.

"If we adopted in March, we'd forgo the ability to get the state [extraordinary] aid," he claimed.

Such aid is pivotal in reducing the tax increase, sometimes by several cents. This year's proposed tax increase is 16 cents per $100 in valuation, but that would be lowered somewhat should the town receive extraordinary aid.

The term extraordinary aid betrays the fact the state awards it, or is supposed to award it, based on a town's ability to show "extraordinary" factors beyond town control that forced the tax rate higher.

Earlier this year, resident Bernard Prohaska asked the township why the budget was not introduced in February and adopted in March, as state law requires.

Business Administrator James White admitted that is the state law, but said that because the state is late getting the aid figures to towns, it gives them some leeway.

Prohaska felt the budget was purposely held back until after the school election in April, so as to not skew voters deciding whether to approve another large school tax increase.

Had they known they'd also be hit with a 16-cent municipal tax increase, they'd be less likely to so support the 37-school tax increase. When residents see their new tax bills, they'll also see how, because of debt service, this year's school tax increase is actually more than 37 cents. The district would not disclose the amount of debt service this year.

Stahl feels that allowing the administration to wait until mid-year to get a council vote on the budget deprives the body of its ability to determine what's in the budget. As the first six months of the year go on, many items are purchased. When the council actually gets to vote on the budget, it has no ability to cut such items.

Though he didn't say which early expenditures he'd like to see cut, Stahl said he feels the budget needs to be in sooner.

During the June 11 meting, Stahl responded when Neely said a town that already passed its budget cannot receive extraordinary aid. He pointed out to Neely that the state requires a budget be passed before extra aid is given. He questioned whether the state would punish a town for abiding by state rules.

Neely said that rule is on the books, but the state makes exceptions.

"They waive rules on many issues," he said.

Neely defended the town's practice of operating on a temporary budget for the first six months of the calendar year. The town could request to change its fiscal year to that of the state, but that would be costly, he said. It would also require changes in accounting structures, reporting deadlines and other processes.

"The cost is not worth if it from my point of view," he said.

White said that by early June there is usually an indication from the state regarding extra aid. However, that did not happen this year.

Still, he said, he anticipates the aid figures will be in by June 30.

Once the state numbers are in, the council can make budget changes and the aid can be factored in, White said.

Neely said the budget can be voted on during the first council meeting of July without readvertising. If the vote isn't until the last meeting of that month, readvertising is needed.