Category Archives: budget hearing

>Public Hearing To Discuss Budget At Tonight’s Middletown Workshop Meeting

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One of the items on the agenda at tonight’s Middletown Township workshop meeting that will be held at Town Hall@ 8PM, will the public hearing on the 2011 proposed Township Budget that was introduced last month.
I am hoping to be at tonight’s meeting but I don’t know if can will make it. I am curious to know exaclty how much the SOA (Superiors Officers’ Association) and PBA union contract settlements have saved Middletown. I would like to know the cost to the Township per individual plan and per family plan of its cadillac employee health plan and then the same for the Township’s HMO employees health care plan, so that it can be figured out approximately how much the Township will be saving based on these settled contracts. It has been reported that if union members wish to remain in the Township’s health plan, members would have to contribute 25% of the cost, whereas if union members opt out of the cadillac plan into the HMO, members would contribute 1.5% of their salaries for health coverage. So it should be easy enough to figure out savings if the numbers are supplied.

Also based on details about the contracts and information released about the layoffs that effect the Department of Parks and Recreation, I believe several people have decided retired instead of being laid off. I am wondering how these retirements have affected the budget? Seeing how the Township is using $3.5M in surplus funds to pay off tax appeals this year instead of bonding for the funds, this budget is only holding $500K in reserve. These retirements are bound to eat into the remaining surplus which would leave the township dangerously close to running out of money by years end.

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Filed under budget hearing, budget meeting, budget surplus, HMO, layoffs, Middletown NJ, Middletown PBA, Middletown Police, Middletown Township Committee

>As A Matter Of Fact…..Budget hearings on the economy and State revenue collections

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This week, the legislature will begin to consider Governor Christie’s proposed FY 2012 budget. This is traditionally the time when the State Treasurer and the Legislative Budget and Finance Officer (LBFO) present their assessment of the state’s economy and what that means in terms of revenue collections for this year and the next. Today, State Treasurer Andrew Sidamon-Eristoff and LBFO David Rosen addressed the Senate Budget and Appropriations Committee; tomorrow, they will address the Assembly Budget Committee. Both of these full-day budget sessions traditionally are broadcast online.

The seven taxes in the table below account for eighty percent or more of the revenue collected by the state. It compares actual revenues collected in FY 2008 and FY 2010 to the amounts Governor Christie is using as a basis for his FY 2012 proposed budget. In an earlier blog, Taking the Long View, we outlined why it is appropriate to consider state collections and spending over a longer period of time than the year-to-year manner of the Governor’s annual budget. Suffice it to say, these are unprecedented times and we need a clear understanding of the situation.

In FY 2008, the state collected and spent more money than in any other year. Then the recession hit and revenues dropped precipitously. The FY 2008 and FY 2010 tax rates and structures are roughly comparable in those two years, i.e. no major increases or decreases were enacted in FY 2008 or FY 2010. Governor Christie is proposing a budget that also includes no significant rate changes.

The one rate change impact would be from the calendar year 2009 income rate increases on taxpayers earning more than $400,000. This likely had a residual effect on income tax collections in FY 2010. This is because higher income taxpayers tend to settle their tax bills in April and in 2009 their tax bills would have been higher (so additional calendar year 2009 taxes that are due would have been paid in FY 2010).

To understand more about state revenues and what these numbers mean, tune in to the hearings and look for Treasurer Sidamon-Eristoff and LBFO David Rosen’s testimony.

Note: NJJP’s “As a Matter of Fact” blog has taken the place of NJJP’s Monday Minute and will be posted here from time to time.

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Filed under As a Matter of Fact, blogs, Budget, budget hearing, Gov. Chris Christie, New Jersey Policy Perspective, Newsletter, tax collections