New Joisey & You

New Jersey Governor Chris Christie said his administration will order spending cuts in Newark as the state’s largest city starts its 10th month without a budget. Governor Christie told reporters it is “ridiculous” that the city of about 277,000 people, 12 miles (19 kilometers) west of Manhattan, has not approved a plan for the year that began Jan. 1, and that Newark will have to agree to unspecified cuts if it wants state aid to balance its budget. (Newark Mayor Cory Booker proposed a spending plan in February, but it has not been approved yet by the City Council.) Gov. Christie went on to note: “Saying they’re late is like being kind…We are looking very carefully at this budget and I’m unsatisfied with the efforts of this administration and the city council to cut back that budget.” [Newark has lost more than a third of its population since the 1930s, has the 10th-highest poverty rate among major U.S. municipalities.] Newark Business Administrator Julien Neals in a statement said the city has reduced its workforce and is looking to end its reliance on state aid. He called the mayor’s spending plan a “step forward” and said Mayor Booker has cut 1,000 workers and trimmed department spending by more than $70 million since taking office: “Newark is confronting growing financial obligations in the face of a serious and persistent economic downturn. We will continue to work with the state and Municipal Council to end our reliance on transitional aid.” The state gave Newark a $32 million loan last year and the city ended the year with an $18 million surplus, according to Gov. Christie said. Newark has again asked for $24 million, but the Governor said he doubts it needs that much; he expects to reach an agreement with city leaders on a financial-aid package: “Last year I stepped up, the state did, and gave them a $32 million loan. What did I find this year? They had an $18 million surplus from last year on my $32 million loan, OK? Fool me once, shame on you. Fool me twice, shame on me.” Two yea4rs ago, Mayor Booker confronted an $83 million deficit in a $605 million budget as the recession cut revenue and Gov. Christie reduced aid to towns and cities. Newark raised property taxes 16%, sold 16 city-owned buildings, and eliminated about 800 jobs, including 167 police officers. The city’s 2012 application for transitional aid, which helps cities in financial distress, cited a structural deficit, increased pension and health-care costs, and a reliance on non- recurring revenue from a settlement with the Port Authority of New York and New Jersey. Mayor Booker’s spending plan called for a $10 million cut in departmental expenses, to $327 million. This year’s budget had a projected $75 million gap that was reduced to $25 million partly as a result of a tax-lien sale, fines related to red-light traffic cameras, and sales of taxi medallions, according to the aid request.