Aid loss could force big cuts or tax hike Spotswood stands to lose $373,000 BY VINCENT TODARO Staff Writer SPOTSWOOD- Borough officials will take another look at their proposed municipal budget for 2008 after learning that the state is cutting municipal aid. Mayor Barry Zagnit and the Borough Council had a budget ready for introduction until finding out recently that Gov. Jon Corzine plans to cut the town's state aid nearly in half. Zagnit said the borough stands to lose about $373,000. Borough Council President Curtis Stollen expressed frustration that the state was cutting aid despite what he feels is good budget management by Spotswood officials. "We had it blow up in our faces," Stollen said of the budget. "The state should be as well run as we have been," he added. "I think the administration did quite a remarkable job of coming to where they did" with the budget. As proposed, the budget totals just over $8,850,000, under the 4 percent state cap on tax levy increases and within the 2.5 percent state cap on spending hikes. Corzine's newly proposed fiscal 2009 budgetwould take away all property tax-relief payments for towns smaller than 5,000 people, and halve those payments for towns with populations between 5,000 and 10,000, such as Spotswood, whose population is about 7,900. Corzine's plan would also cut other state aid to municipalities, for a total of $190million in reductions. The governor has instead proposed a $32million fund to reward towns that merge or share services. Corzine is, however, giving more money to school districts such as Spotswood, under his newschool funding formula, and the Board of Education is currently proposing a budget with no tax increase for 2008-09. The municipal budget that was being considered before the state aid cutback would have carried a 6.3-cent tax rate increase, meaning the owner of property assessed at the borough average of $253,000 would pay an additional $61 per year inmunicipal taxes, Zagnit said. But with its state aid cut by about 45 percent from last year, the tax rate would have to be increased by about more 6 cents, bringing the increase to about $125 a year for the average property. Zagnit said hewas pleasedwith the way the budget had been coming together before Corzine announced the cuts. In fact, Spotswood would not have been eligible for state extraordinary aid later this year due to the way the town has handled its finances. Zagnit noted that such aid is only intended to help towns through rough times. He said the next step is for the borough officials to do some "contingency planning." The aid cutback is not written in stone, themayor said, but if it does occur, the town will have to look atmaking "deep cuts" in the budget. "We have only a maintenance budget," Stollen said, explaining that no new programs or positions were added into this year's budget. "I think the budget will have to be reviewed again. We are trying to maintain services. The council does not want to see services cut in any way," Stollen said. The council has already held one budget workshop, and was planning for another until the news of the aid cut arrived recently. "Then everything as we knew it was off," Stollen said. The borough was on track to introduce the budget earlier than usual, a move that would have avoided having to send out estimated tax bills, as has been necessary in the past, he said. Now, Stollen said, "We're at Trenton's mercy. "The taxpayers ofNewJersey have really been poorly served by our state representatives," he said. "They put us in this position by increasing pensions without getting enough money put away. It's always for the short-term gain of votes. We've got to get past that because it should be about responsibility and good government, not just getting elected the next time."