new_jersey government politics Dumont money
$600k from New Jersey
Thanks, New Jersey. This is an update to my previous posting about the financial mess in town.
DUMONT - The borough will receive $600,000 from the state to help bail it out of $1.4 million deficit accrued during years of fiscal mismanagement.
Dumont - along with New Brunswick - will receive one of the highest grants from the state this year, according to the state Department of Community Affairs. …
The $600,000 in aid represents nearly half of the budget deficit. The borough is allowed to pay back the deficit over three years in exchange for letting the state oversee its financies. [sic]
I guess the state government did not want the borough to fall like overripe fruit, thus the “grant.” But if we're going to be paying it back over three years (that is, if the local taxpayers are going to be paying it back), isn't it really more of a “loan” instead?
Going by the 2000 census numbers the sum translates to $34 per capita or $94 per household. Of course, there's likely to be interest on top of it, plus the other half of the deficit which will be reflected in near future tax increases, plus the tax increase needed to cover future obligations, so I won't be surprised if the impact is more like a couple of hundred dollar per tax return.
It will hurt less this way than if we needed to balance everything all at once. So my “thanks” isn't meant ironically. But it is certain that things are going to be a bit tighter for us taxpayers for the near term.