Senator Steve Oroho (R-24)

Oroho: Don’t Punish Municipalities that Operate Efficiently

Senator Steve Oroho (R-24), a member of the Senate Budget & Appropriations Committee, said that Governor Corzine’s proposal to cut nearly $190 million in municipal aid from the state budget will improperly punish small towns that operate efficiently while protecting larger towns that continue to waste money.

Under Governor Corzine’s FY 2009 budget proposal, state aid to towns with populations under 10, 000 will be slashed or eliminated in a stated effort to encourage municipal consolidation and shared service agreements.

“The four-month time frame put forth by Governor Corzine for small municipalities to consolidate is unrealistic and will only ensure that residents of small towns receive higher property tax bills,” said Oroho. “We should encourage municipalities to investigate consolidation and shared services in a thorough and intelligent manner, not force them to rush into agreements that may not make sense.”

Previous testimony to the budget committee from the League of Municipalities has indicated that approximately 80% of towns in New Jersey already share services with their neighbors when the possibility for savings exists.

“Many small towns already share services and operate with a lower cost per resident than their larger neighbors,” said Oroho. “Governor Corzine’s budget, however, fails to account for the efficiency of municipal operations when determining municipal aid, and improperly assumes that towns become more efficient as they get bigger.”

Oroho noted that the Governor’s proposal will do nothing to encourage larger municipalities to adopt the cost-saving measures and cooperative agreements that small towns have depended on for decades.

“Rather than punish small towns based on population, we should reward municipalities that already share services and have a low cost per resident,” said Oroho. “Similarly, we should penalize towns, regardless of size, that do not spend taxpayer money efficiently.”

Oroho concluded, “Until Governor Corzine’s budget proposal accounts for efficiency in municipal aid calculations, the residents of small towns will continue to shoulder an inequitable portion of these budget cuts.”

Link to Post:

http://www.senatenj.com/index.php/oroho/oroho-dont-punish-municipalities-that-operate-efficiently/318

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