newjerseynewsroom.com

Christie says he's willing to review proposal

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Legislation was introduced in the Assembly Tuesday that would restore $139 million in so-called state transitional aid to 11 cities with serious fiscal problems. The Senate version was introduced last week.

Gov. Chris Christie line-item-vetoed the aid from the state budget in June, leaving only $10 million in aid for the cities. The governor objected to Democrats removing a clause in the budget that allocated 1 percent of the total $149 million for oversight of how the money would be used and said he would not sign a bill restoring the money unless $1.5 million for supervision was included, something Democratic sponsors in both houses have done.

Camden is in line for $61.4 million, Trenton $22 million, and Paterson $21 million. Asbury Park, Lawnside, Union City, Harrison, Chesilhurst, Penns Grove, Prospect Park, and Maurice River would share the remainder.

At an appearance in Camden, Christie told reporters he would review the bill when it reaches his desk but added, “I’m not going to send the income tax money of New Jerseyans to cities in distress unless I can ensure them we have the oversight that’s necessary that that money will be spent wisely and not wasted.

"We have a $210 million shortfall already," Christie told reporters. "How about they have some hearings about how they’re going to cut things to be able to balance the budget between here and June?"

Transitional aid is only available to cities and towns anticipating difficulties making payments toward nondiscretionary or critical obligations including debts, contractual obligations, and public safety payroll. And it is only available where local officials have “implemented substantive cost reduction strategies.”

In addition, municipalities receiving the aid are required to sign a memorandum with the state Division of Local Government Services acknowledging state controls and committing to compliance.

New Jersey State League of Municipalities Director Bill With said that with municipal budgets hanging in the balance, fast action is needed on the legislation. He said otherwise municipal program and personnel cut-backs could follow.

On July 18 Christie announced his support for a supplemental appropriation to provide the $149 million, provided state administrative expenses were covered and appropriate safeguards, regarding the use of the funds, were guaranteed.

“We applaud (the bill) S-3118, which advances Governor Christie’s decision to restore $139 million to the Transitional Aid program,” Bill Dressel, the executive of the N.J. State League of Municipalities, said. “This program is meant to help municipalities deal with extraordinary difficulties. Throughout the appropriations process, the administration proposed a $149 million appropriation for this purpose. That level of funding was a part of the governor’s original budget proposal. The state Senate has already demonstrated its commitment to the program. And Assembly leaders have articulated their support.”

Assembly Speaker Sheila Y. Oliver (D-Essex) and Assemblyman Vincent Prieto (D-Hudson) are sponsoring the lower house version, and Sen. Donald Norcross (D-Camden) and Sen. Paul Sarlo (D-Bergen) are sponsoring the upper house version.