When the Jersey City Council decided to change from a fiscal year budget cycle to a calendar year cycle, it meant they could introduce a budget early for once.
The $255.7 million Transition Fiscal Year 2010 Budget was introduced by the City Council at a special meeting on Monday. The council voted at its Aug. 4 meeting to change from a fiscal year to a calendar year, which will start on Jan. 1.
The budget covers the period from July 1 to Dec. 31, which would normally be the first half of the fiscal year 2011. A fiscal year runs from July 1 to June 30 of the following year.
In past years, budgets were introduced late in the fiscal year, held back in order to receive state aid as well as federal grants that did not arrive until October. But the problem was that the city spent most of its money before introducing the budget, and was then unable to make cuts.
‘[This budget] does nothing to solve how the city deals with its finances.’ –Councilman Steven Fulop
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Before Monday’s meeting. Kelly spoke about the benefits of changing to a calendar year budget.
“For this transition year budget, most of the revenue would be realized, in fact you would have 100 percent of revenue,” Kelly said. “Then you have a surplus that can roll over for next year’s budget.”
But Kelly also noted that the changeover from a fiscal year to a calendar year is not a “panacea” for the city’s financial woes. The city changed over to a fiscal year cycle in 1991.
The transition year budget also includes a $97.15 million six-month transitional tax levy, raising taxes for the average homeowner by $20 a quarter.
A public hearing is scheduled on the budget on Sept. 29 at 6 p.m. in the City Council chambers in City Hall.
Council weighs in
The council spent 15 minutes for the special meeting, voting 7-1 for the budget with City Councilwoman Viola Richardson absent.
City Councilman Michael Sottolano was cautiously optimistic about the budget’s impact.
“This is not an answer for our financial difficulties … but it certainly puts us the right direction,” Sottolano said.
City Councilman Bill Gaughan also agreed with the move to a calendar year cycle and called for a list of Jersey City Incinerator Authority and the city’s Division of Public Works employees.
The city is rumored to be considering a consolidation of the Incinerator Authority and Public Works Department to save money. The city started implementing cost-cutting moves before the transition budget was introduced, including the furloughs of municipal employees – starting this past Friday – for 12 days through July 2011; the closing of the city’s police academy, and taking city vehicles away from some officials.
City Councilman Steven Fulop was the lone dissenter, even though he conceded he was aware that the city was “trying to buy some time.”
After the meeting, Fulop said he voted against the budget because it solves the city’s financial problems in the short term but does not address the city’s larger financial issues.
“It’s not a bad idea to be on a calendar year.” Fulop said. “But it does nothing to solve how the city deals with its finances, such as we just financed a $70 million building.”
Fulop was referring to the council voting in June to bond for $67 million to build a new complex for the Incinerator Authority, Public Works Department, and Municipal Utilities Authority.
Ricardo Kaulessar can be reached at rkaulessar@hudsonreporter.com.