FREEHOLD – The Monmouth County Board of Chosen Freeholders has adopted an amendment to the 2008 budget that would reduce county spending by more than $8 million this year, thereby reducing the proposed increase in the county tax burden to zero.

 

In order to make the cuts, the Board rescheduled last night’s planned budget adoption to noon March 6 in the Hall of Records, following a public hearing on the amendment.

 

“There is no single power of government that directly touches the lives of more people than the power to tax,” Freeholder Director Lillian G. Burry said when introducing the amendment. “Therefore, I have directed that a budget amendment be drafted that meets my two objectives – preservation and continuation of our strong county programs and a zero tax increase.”

 

The cut in the tax burden will be realized by reducing costs for insurance, social security and disability, and an increase in revenue from a recent bond sale. Additionally, the freeholders agreed to apply unexpended balances from existing bonds to offset the proposed tax increase.

 

“Residents in New Jersey are fed up with high state taxes and Monmouth County residents are no exception,” Freeholder Robert D. Clifton said. “In view of the governor’s cuts, many of which merely shift the tax burden from the state to local government, we felt it was incumbent upon us to deliver real tax relief now. This is a sound plan that creates no new debt and no additional tax burden.”

 

The amendment would reduce the budget from $489,200,000 as introduced to $481,114,000, which is a less than 2 percent increase in the overall budget. The amount to be raised by taxation would be reduced from $294,590,000 as introduced to $286,504,000, which is the same as 2007.

 

This is the third year in a row Monmouth County freeholders have crafted a budget that holds the tax levy to below the rate of inflation. When the freeholders began their budget deliberations in December, they were looking at a $13.2 million increase in the tax levy. That figure was whittled down to $8 million, or 2.8 percent over the 2007 tax levy, for the budget’s introduction in January.

 

Freeholder John D’Amico Jr. said he supports the reductions in the tax levy, and he agreed with the other freeholders who said they must continue to identify areas where savings can be found. The county’s planned strategic is designed to identify those additional savings. 

“Taxes have become the biggest concern to Monmouth County residents and business leaders,” D’Amico said. “This is a reasonable beginning. Many of the cuts are responsible even though they are one-time receipts. Hopefully, there will be economies in the strategic plan.”

 

Finance Director Mark E. Acker has identified pension increases and utility costs as being  largely responsible for the increase in the budget this year.

 

“We have achieved this goal (of a zero tax increase) despite Trenton’s failure to adequately address major issues such as school funding or its mismanagement of the state pension fund, which is causing mandatory annual pension payments to increase by 50 to 100 percent a year to cover a shortfall,” Clifton said. “Not only are we paying dearly for Trenton’s mistakes, but we are required to pay the money back over a 5-year period at 8.2 percent interest.”

           

Freeholder William C. Barham said increases in the tax levy has steadily declined over the past four years.

 

“Four years ago, budgets contained 6 percent and 8 percent increases,” Barham said. “This Board has not recklessly cut the budget; we have methodically and diligently gone through this budget to identify areas that can be cut. We will continue to do that.”

 

Freeholder Barbara J. McMorrow thanked the public for their input during the series of budget presentations held around the county in recent weeks.

 

“The input from the public was invaluable,” Freeholder McMorrow said. “These are hard times financially. We are facing the closure of Fort Monmouth, a decline in the housing market and instability in the state budget. But for the first time we have a zero increase.”

  

Noting the state’s ongoing fiscal woes, Freeholder Burry said, “Tax troubles for the people of New Jersey may be far from over, but one thing will be certain – Monmouth County won’t be part of the problem.”

 

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