O'port mayor sees borough ahead of trends

O’port mayor sees borough ahead of trends
BY KENNY WALTER Staff Writer

OCEANPORT — With municipalities across the state bracing for a fiscal year with little to no state aid, Oceanport officials are thinking the borough may actually be ahead of the curve.

Mayor Michael Mahon spoke at the March 4 Borough Council meeting more than a week after attending the 18th Mayors’ Legislative Day in Trenton on Feb. 24.

Mahon said that Gov. Chris Christie spoke at the meeting and was very upfront about the state’s budget situation.

“He was pretty blunt that the fiscal constraints that the state finds itself in will be dealt with,” he said. “That means that municipalities are going to do some more sacrificing.

“He is pretty much calling for municipalities to follow his lead.”

Mahon said one of the issues the New Jersey League of Municipalities has addressed is the effectiveness of the statemandated 4 percent cap on property tax increases, and Mahon said Christie is not likely to eliminate it.

“One of the things that he was particularly stern about is there is a 4 percent tax levy [cap], and the governor doesn’t support lifting that cap,” he said, “because the governor doesn’t support local municipalities saying, ‘Well, if we don’t get it from Trenton we will just raise taxes locally to pay for what we want to have instead of making the tough choices.’

“So that cap will stay in place, and the governor will not sign any legislation lifting that,” he said.

Council President Joseph Irace and Clerk/Administrator Kimberly Jungfer said this year’s budget would once again remain under the cap.

“We’ve been under that 4 percent cap, and as far as this year, we are going to be sure we are under it,” Irace said.

“Though barely, we will be under it,” Jungfer added.

Oceanport has had state aid cut two years in a row, and Mahon is confident that the system to dole out the aid may actually work in favor of the borough.

“He also indicated that we can expect all forms of municipal aid will be cut, but it will be cut fairly,” Mahon said. “That may make a difference to us because the previous administration cut municipal aid based on population.

“It might be a plus for us or a minus, so we are not sure,” he added.

One councilman questioned the state for cutting state aid while continuing to mandate certain budget line items.

“The problem still comes up with the unfunded mandates,” Councilman Jay Briscione said. “They are asking us to stay under the cap, while cutting state aid and demanding that you do certain things.”

Mahon assured him that unfunded mandates are also going to be looked at.

“One of the things that the lieutenant governor [Kim Guadagno] is doing is looking at the unfunded mandates,” he said.

Mahon also spoke about a Senate bill passed last month that would mandate public employees pay at least 1.5 percent into their health insurance benefits.

Mahon said the bill wouldn’t affect Oceanport because the borough is ahead of the curve on that issue.

“That is because last year we enacted the same provisions.

“We already had that for our employees that are non-contract last year, and we have a tentative agreement with our contract employees that has a similar provision,” he added. “We have already achieved those savings, so the bill won’t have an impact on us.”

Another idea raised at the league meeting, Mahon said, was changing the way schools are funded.

“Under the state Constitution, the state is responsible for education, not the municipalities,” he said.

“The practice has always been historically to collect property taxes in order to pay for the schools. What they are hoping to do is shift it to another mechanism that more or less relies on individual income.”

Mahon said the league has already formed a committee and is asking municipalities to support the idea.

Mahon said he wants to look closer at the benefits and drawbacks of the plan, but his initial thought is that the switch would be positive.

“At first glance, that seems to be a shift that is more fair,” he said. “It does not change the cost of education, it simply shifts the cost in a different direction.”

Irace said that this system has some precedent across the country.

“It is based on the Michigan plan; it basically shifts it out of property and into income,” he said.
Contact Kenny Walter at
kwalter@gmnews.com.