2010 State Aid to Vernon

EXPALANTION OF THE STATE AID TO VERNON


Every once in awhile you have to chuckle at the supposed experts ( former CFO Bernicke and Manager Carlton) and former politicians ( Carew, Gray et al) and here’s why. As you know the Vernon Taxpayers Association was against last years pension deferral for two reasons, the payback costs of the deferral and the failure to apply for extraordinary Aid. Well it turns out there is a third reason and that is State Aid to Vernon will be reduced forever by the deferral amount. Apparently neither the CFO or the Mayor and Council new this even though it is spelled out in how State Aid formulas will be determined, posted in 2009. The basis for all of the following is found at http://www.state.nj.us/dca/lgs/ under CY 2010 State Aid Certification. The town is slated to lose 20.4 % in state aid and here’s a breakdown of the areas that will be reduced:

--------------------------------------------------------2009 ------ 2010

Consolidated Municipal Property Tax Relief -208,447--------98,792


Total Energy Tax Receipts Distribution ------- 2,132,531-- 1,763,456


Garden State Trust ------- 164,928-------- 158,945


Watershed Moratorium Offset -------- 294,455 ---------0


Total Formula Aid ------- 2,800,361------ 2,021,193


ETR Allocation Breakdown ----2009 -------- 2010

2009 Allocation ---------- 2,132,531

Less: Budget Reduction ------- -436,103

Subtotal Before Hold Harmless Transfer ---138,166---- 67,028

Final Aid ---2,132,531 --- 1,763,456


Yes the -436,103 Budget Reduction refers to the 2009 pension deferral.

The rest of the CY 2010 State Aid bulletin goes on to give few other caveats in budget adoption. One is that the Council decides to

“As a means of encouraging and rewarding local adoption of basic best government practices, the budget proposes that the final five percent CMPTRA/ETR aid payment will be withheld unless the municipality certifies that they meet a variety of pre-selected best practice standards, including adoption of a budget without use of a levy cap adjustment for formula aid reductions. “

Some other caveats are these:


• Considering not only how services are provided, but the need for them;
• Sharing services with neighboring governments, schools, and county agencies;
• Reviewing all employee contracts and benefits policies for consistency with the economy and government financial conditions; and,
• Taking advantage of all opportunities to reduce costs before exercising their local authority to increase property taxes.

• Considering not only how services are provided, but the need for them;
• Sharing services with neighboring governments, schools, and county agencies;
• Reviewing all employee contracts and benefits policies for consistency with the economy and government financial conditions; and,
• Taking advantage of all opportunities to reduce costs before exercising their local authority to increase property taxes.

Currently the township is considered a medium rate/medium income municipality which gets it a 20.4 % deduction in State Aid.