Mayors, Corzine spar over services

TRENTON - Warning: Merge ahead.

New Jersey mayors don't need a roadside sign to get a sense of direction from Gov. Corzine. The Democratic governor's proposed budget would reward mayors who find ways to merge services with those in adjacent towns.

Municipalities that don't heed the governor's call would pay the price by receiving reduced state funding.

The Democratic governor told a group of mayors and municipal leaders yesterday that he was committed to using state aid as a tool to reward cities and towns that share services. Corzine said he believed that many communities could save money and cut property taxes by sharing services such as police.

The mayors aren't convinced his consolidation-incentive plan, part of an overall $33 billion budget proposal that calls for across-the-board cuts in state spending, has merit. They contend consolidation of services won't save as much as the governor thinks and will lead to higher property taxes.

"Shared services will not produce the kind of savings the taxpayer will expect," Richfield Park Mayor George Fosdick said.

Corzine said consolidation could save significant money "if it's done on a grand scale across the state."

Corzine has proposed the largest funding cuts for towns with fewer than 10,000 residents. Towns with 5,000 to 10,000 residents would see sharp reductions in state aid, and state aid would be eliminated for towns of fewer than 5,000 people. Small towns would instead be eligible for grants to share services or merge with other towns.

East Orange Mayor Robert L. Bowser disagreed with the governor's assertion that cuts in aid would not bring property-tax increases.

"I think that it's wishful thinking at best," Bowser said.

Clark Mayor Sal Bonaccorso said the state-aid cut would double municipal property taxes in his Union County community. In Richfield Park, Fosdick said, shared services save about $22.90 on an $8,000 tax bill.

Corzine told mayors he could phase in these funding cuts if the state budget ax fell elsewhere. And he said he hadn't heard of a better alternative.

"I'm open to it, but we haven't heard any suggestions," Corzine said.

"We have $33 billion, roughly," Corzine added, "so if there are other cuts that they propose, should we take it out of charity care? Should we take it out of higher education?"

Several legislators have vowed to fight Corzine's proposed cuts in municipal aid.

"It is absolutely hypocritical for the state to offer historic levels of education funding on the one hand, while cutting municipal aid on the other," said Sen. Paul Sarlo (D., Bergen), who is also the Wood-Ridge mayor. "Any benefit that middle-class municipalities would see from the new school-funding formula would be erased."

A state budget must be adopted by legislators and Corzine by July 1.

Corzine's meeting with mayors came a day after his budget's first public hearing, at which many citizens and local officials complained his plan would make New Jersey more unaffordable.