After months of waiting on the release of the 2002 county budget, the Hudson County freeholders discovered taxpayers will pay less than a year ago, not more.
"This was wholly unexpected," said Freeholder Bill O’Dea. "When the budget comes in this late, you expect it to go up. It did not."
If passed as introduced, the 2002 county budget, which covers spending from July 1, 2002 to June 30, 2003, will rise by $17 million. Much of the increase in the $346 million budget has to do with negotiated salary increases and increases in medical coverage costs, said County Executive County Executive Bernard Hartnett when he introduced the budget to the freeholders at the June 27 meeting.
Of the total budget, $189.4 million will be raised from taxes. The total increase in the amount to be raised by taxes is about $3.5 million.
Taxpayers in Hudson County pay overall tax bills that include county, city and school taxes. The new budget affects only the county portion.
Excluding payments resulting from grants, county spending rose by 3.5 percent over the 2001 budget. The impact of this increased spending, however, was offset by the fact that ratables – the total taxable property in the county – rose by 14.1 percent or $3.3 billion, the largest increase in Hudson County history. Total taxable property in the county is now at $27.4 billion.
This will cause the tax rate to drop by 84 cents per $1,000 in equalized value or 10.68 percent. The rate – in this budget – will drop from $7.84 in 2001 to $7 per $1000 in 2002.
"This brings us back to the 1995 rate," said O’Dea. "I don’t know how many municipalities or counties can show they have the same tax rate as they had seven years ago."
"The increases in ratables around the county shows that Hudson County is well on its way to becoming the premier county in the state and the economic and financial capital of New Jersey," Hartnett said.
Hartnett said the proposed budget is $2.8 million below the amount permitted by the state.
While this year’s budget contains one non-renewable revenue source, a payment from the New Jersey Turnpike Authority for the purchase of land for the Secaucus exit, the $5.4 million is spread over three or four years.
Freeholder Chairman Sal Vega said that while he disapproved of non-renewable revenues, he applauded the county executive’s initiative in spreading the revenue to have an impact on future budgets.
Fitz not pleased
Freeholder Maurice Fitzgibbons said lower tax rate or not, he and representatives from Hoboken would be looking over the budget with an eye toward cutting.
"The budget very unfair to the taxpayers of Hoboken," he said. "Hoboken taxpayers pay $30 million of this budget."
Fitzgibbons, who represents all of Hoboken and a section of Jersey City Heights, noted that Jersey City – which is much larger – pays only $42 million. Municipalities around the county have often been critical of Jersey City’s getting a larger benefit of county programs.
"What do we get back for that $30 million?" Fitzgibbons asked. "We get one small park with a child’s playground that has been closed for three years."
O’Dea, who represents the west side section of Jersey City, said there is room to cut, and intended to look at money budgeted for currently vacant positions.
"I’m sure we can come up with several hundred thousand dollars in cuts," he said.
A public hearing on the budget will be held August 8.