Dear Editor: Mayor Schundler has been using the excuse of adjusted inflation to justify the city’s fiscal problems. He blames the state for loss of revenue but his statements are without merit. I, like many others, keep copies of former tax bills. On the first quarter of every year is a box called “State Aid Used To Offset Local Property Taxes.” It then continues to explain that the current tax bill funds the budgets of government agencies in order to reduce local property taxes. For 1993, the state gave $37.7 million to municipal governments, $175.3 million to school districts, and $11.9 to county governments. This figure increased in 2000. The state gave $97.2 million to municipal governments, $311.8 to school districts, and $17.8 to county governments. Jersey City, as a special needs district, has always received the lion share of aid compared to other municipalities. Our pie share is greater! So Mayor Schundler’s statement that state aid has not increased is simply not true. Furthermore, Schundler attacks the governor in his recent letter to taxpayers saying “State spending under Governor Whitman has increased 27 percent or an average of 4.5 percent per year.” I do not understand Schundler’s reasoning. Why attack the governor for her increased spending if the spending goes back to municipal, school and county governments? Then, why tell Whitman, that the city’s fiscal problem is due to cuts in spending while asking for more aid? This confusion continues in a former tax letter. (Mayor Schundler does not put dates on his tax letters, but I believe it is 1997.) He states, “In fact, I am pleased to report that in spite of five years of inflation, the city’s budget is again lower (for the fifth straight year) than it was way back in 1992, before I became Mayor.” Then the mayor says, “Over all, the city’s fiscal condition continues to improve.”If that is true, shouldn’t the city be able to balance its budget? Governor Whitman cannot run for governor and is not seeking another office. She does not need the support of voters, so why attack her? If she turns over $16 million, then she is generous. Mayor Schundler’ behavior is hurting taxpayers and municipal employees. Yvonne Balcer