Spending is up but individual taxes are down in the $329.7 million county budget for calendar year 2001. The overall amount of taxes that the county has to raise from all of its property owners is up by 4 percent, but because there is more property being taxed than last year, each individual taxpayer will pay a 6 percent lower tax rate.
The budget was introduced by the county freeholders on May 10.
In introducing the budget, County Executive Robert Janiszewski said an increase in county ratables offset a moderate increase in spending, allowing taxpayers a smaller than expected tax bite.
The 2001 budget – if passed as presented – would see a reduction of about 51 cents per $1,000 of assessed value on a home, or about of $82 on a home assessed at $160,000.
“The tax rate is going down,” said County Administrator Abe Antun, “but the tax levy is up slightly.”
This year’s budget will exceed last year’s by $9.5 million and the money needed to be raised by taxes is $7 million higher.
“Since 1999, the county’s ratable base has increased by $4.5 billion, reducing the county’s portion of the property bill for most Hudson County residents,” Janiszewski said.
Freeholder Bill O’Dea, however, pointed out that predictions for figures on past budgets didn’t always materialize. This budget also fails to account for the purchase of the Kopper’s Koke site in Kearny, an $11 million payment due in October. Janiszewski said the county has other options including bonding or possible aid from the state.
O’Dea voted against introducing the budget, claiming the freeholders got it only hours before they were scheduled to vote.
Frugal, but not stingy
Janiszewski said dire talk about the national economy did not hold true in Hudson County where increasing ratables made it one of the centers of economic growth in the state.
“The construction boom continues all over the county,” he said.
Employment is up and the county has initiated major programs this year, including one dedicated to the rehabilitation of brownfields – areas tainted or perceived tainted by past manufacturing. He said the economic output for the county – the county’s equivalent to the gross national product – was $22 billion this year, exceeding the output for the entire state of Vermont, as well as numerous small countries.
“Today, we lead the state in capital investment, housing and job growth,” Janiszewski said, noting that over the last decade county government had reduced in size, dropping from a high of 4,500 employees in 1990 to 2,700 in 2001.
Operational grants the county has sought and received this year brought in $36 million, with an additional $18 million in grants dedicated to specific projects. Since 1998, Hudson County has received nearly $500 million in grants.
Increasing ratables – which are properties and businesses that pay taxes – played a huge role in the tax reductions, Janiszewski said. Many of the problems in the past came from a shrinking ratable base, which meant less people available to pay. In 1993, the ratable base was $23.2 billion. This declined steadily until 1998 when the value reached only 19.5 million. Since then, the value has climbed again until this year when the base is expected to reach $24 billion.
Although the county has been frugal, it has not been stingy, Janiszewski said, pointing to the numerous initiatives this budget has for road and parks improvements.
In reacting the budget presentation, O’Dea asked the other freeholders to request an operations audit from the state that would give the county a better idea of where it needs improvements.
Freeholder Barry Dugan praised the efforts of the county executive in reducing the budget, noting that his own town, Bayonne, had struggled to hold down costs.
Freeholder Al Cifelli asked for a review of spending this year to see if the numbers match up with what the budget is predicting.
“We’re already through a third of the year and we should be able to tell if the numbers will hold up,” he said. Freeholder Chairman Sal Vega said skyrocketing insurance costs have caused the county to establish an insurance commission, and he felt the freeholders should have representation there in order to help have a voice in lowering costs.
“I agree that this budget is mostly good news,” Vega said. “I think we need to thank Senator [Bernard] Kenny, who has – as a senator in the minority party – worked very hard to get us our fair share of revenues from the state.”
A public hearing on the budget is slated for June 14 at 7 p.m.