Saturday, April 10, 2010

Doing More with Less -- A Common Concern

Just read any newspaper in the country or surf the Internet and you will come across article after article reflecting one jurisdiction after the other seeking for ways to deliver public services in the face of a major economic downturn in which the unemployment rate remains stuck.

In my recent visit to the Washington, D.C. area, the Washington Post ran many stories about state, county and local government cutbacks.

Just like us in the Garden State, others are experiencing reduced tax revenues and the need to modify their budgets. Near the nation’s Capital, officials of Montgomery County Maryland have been advised that they can no longer count on the same level of state aid, and that they will need to find ways to provide public services with less cash from state coffers.

Another recent example – very close to home – is that of Somerset County, New Jersey. In its April 7, 2010 E-mail advisory, the freeholders released information about the county budget which is scheduled for a public hearing on April 27 at 7 p.m.

The freeholders are striking the same chord as that of Governor Christie in his message to school districts: Freeze salary increases. The county, although experiencing success, is struggling with the same problem facing school districts and municipalities. Not all employee groups are agreeing to hold the line.

In the E-mail release, Freeholder Director Jack Ciattarelli said that “These unprecedented times call for shared sacrifice and making difficult decisions.” He goes on to explain that “The wage freeze imposed on non-union personnel and accepted by the majority of unions is, all things considered, more than reasonable, fair, and appropriate given the economic crisis.”

However, Mr. Ciattarelli concluded that the freeholder board “remains deeply disappointed and troubled by those unions that, to this point, have chosen not to accept a wage freeze.” Seven of the county’s nineteen unions are still holdouts.

The proposed Somerset County budget is $212.3 million, 1.16% less than last year, with $169.9M to be raised through the county tax, which “will rise slightly, by .0016, from .2652 to .2668 per $100 of assessed value.”

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