N.J. increases port payment to Camden

The State of New Jersey has quadrupled an annual payment it makes to Camden, drawing criticism from some lawmakers who say they were bypassed at a time when state aid to other municipalities is being slashed.

The $8 million payment will go to the city through South Jersey Port Corp., a quasi-governmental, tax-exempt agency that runs the port on Camden's waterfront.

The payment in lieu of taxes represents a $6 million increase over previous years and will help close what was projected to be a $24 million deficit in the city's 2009 budget.

The deal was reached by state treasury officials - who helped Camden craft its budget this year - and the state-appointed overseer of city government, Theodore Z. Davis, who requested the additional money. It was made public when City Council held a hearing on its proposed budget last month.

That has some Republican legislators concerned. They said that if the Corzine administration wanted to increase funding to a state agency or to a city, the request should have been vetted and approved by the legislature.

State Sen. Phil Haines (R., Burlington) said his first reaction was shock.

"And that's followed by indignation at the way the administration has treated other municipalities in New Jersey, cutting millions of dollars in municipal aid," he said.

"We didn't have any money for rural state police patrol. That's public safety. And now, all of a sudden they have $6 million?"

Through a spokesman, Gov. Corzine referred questions to the Department of Treasury.

Treasury spokesman Tom Vincz said the increase was approved because the fair market value of the 285-acre port was $300 million and taxes on such a property would equal about $8 million.

"It's based on sound real estate and financial principles, and is being used for the purpose of providing the city fair payment in lieu of taxes," he said.

Previous payments from the port to the city have fluctuated wildly. According to the Treasury Department, in the late 1990s the port paid the city nothing, then followed that with $6 million in 2001 and $2 million every year since, except for 2004, when it gave nothing again.

Haines believes an approved formula should be applied. Having city and state officials get together and come up with a number is "seat-of-the-pants kind of governing from the administration," he said.

He said that he was open to hearing why Camden deserves more money for the port but that the matter should be dealt with at budget hearings and put up for a vote.