Freeholders Introduce 2009 County Budget

Wednesday, 18 February 2009 12:03

Newsbrief - Monmouth County

Salary freeze or layoffs required to keep tax impact minimal

FREEHOLD, NJ – The Monmouth County Board of Chosen Freeholders introduced a $490,216,000 budget last night, an increase of just 1.9 percent over last year’s figure. 

Despite an overall increase in spending due to a number of fixed costs, such as pension contributions and insurance, the budget reflects a sharp drop-off in revenues from realty transfer fees and investments due to the nation’s ailing economy.

“This is a very austere budget and is a reflection of the poor economy and the absolute need to trim expenses wherever possible without severely impacting our excellent county services,” Freeholder Director Barbara J. McMorrow said. “Even so, this is just the beginning of a work in progress and we will continue to examine ways in which we can further reduce the tax burden on our residents.”

As introduced, the proposed increase in the tax levy is $10,996,000, or 3.8 percent. By comparison, there was no tax increase last year because revenues were close to the $10 million figure. This year, the county is anticipating an overall decrease in revenue.

The county budget is scheduled for adoption on March 12, with a number of public meetings in between.

“The freeholders and county staff began planning this year’s budget six months ago when it became apparent revenues were going down,” said Freeholder Robert D. Clifton, liaison to the Finance Department. “We implemented significant budget-cutting measures last year that make this year’s budget, as painful as it is, a little less so because of those efforts. It’s still preliminary.”

Finance Director Mark E. Acker alerted freeholders last summer that the county was looking at almost $25 million in increased costs. As a result, all county departments were ordered to hold back 5 percent of all discretionary spending and asked to prepare their 2009 other expense budgets reflecting a 15 percent decrease. Additionally, all 2008 overtime was restricted to essential services.

“Our response to the faltering economy certainly has helped, but was not enough to solve all of our financial problems,” Acker said.

Therefore, in early 2009 county officials took these other steps to trim expenses:

·         reduced the employee prescription plan by $1.3 million, requiring higher co-pays;

·         reduced the 2009 allocation to educational institutions by $941,000;

·         reduced the overtime budget by $2.6 million;

·         reduced expenses in the medical examiner’s office by $200,000;

·         eliminated the summer youth program, saving $370,000;

·         removed $4.1 million in projected capital expenditures;

·         reduced overnight travel allocation by 60 percent;

·         suspended the employee tuition reimbursement program unless contractually required, and

·         reduced department budget allocations by $5.6 million.

The freeholders also froze salaries of all 1,087 nonunion county employees at 2008 levels, which will result in a savings of about $2.4 million, and have asked all 23 bargaining units to do the same or face layoffs. Savings on union salaries would equal about $4.8 million. As introduced, the budget shows an overall decrease in salaries from 2008 levels.

“No one wants to see anyone lose their jobs, especially not in this economy, so we are hopeful the unions will concede to the salary freeze,” Freeholder Lillian G. Bury said. “In this tough economy, this budget spreads the pain around very evenly among county workers and taxpayers.”

The proposed spending plan is up by $9,102,000. The amount to be raised by taxation $297,500,000, up $10,996,000, which represents the 3.8 percent increase. Under the proposed budget, the county tax rate would be 23.04 cents for each $100 of assessed valuation, up from last year’s amount of 22.5 cents.

“This budget reflects current financial realities and holds the line on county spending at a time when residents are in a similar situation,” Freeholder Amy A. Mallet said. “We are still sharpening our pencils and looking for efficiencies. For example, I am exploring a plan that would give employees an incentive to opt out of their county health plan if they have coverage somewhere else. This could provide substantial savings for the county and would be a win-win all around.”

Budget workshop meetings are scheduled for 10 a.m. Feb. 25 and again on March 5 in the second-floor conference room of the Hall of Records, Freehold. A number of county departments are expected to make presentations. The public may attend, but will not be able to comment at that time.

Once again, the Board will be taking the county budget “on the road” with a PowerPoint explanation of the proposed spending plan. Input from county residents is encouraged. Public budget presentations have been scheduled at the following two locations:

·         7 p.m. Feb. 25 at the Monmouth County Library Headquarters, Manalapan

·         7 p.m. March 5 at the Monmouth County Library Eastern Branch, Shrewsbury

In addition, a public hearing will be held prior to the budget’s scheduled adoption on March 12 in the freeholder meeting room at the Hall of Records.