Camden will get a big chunk of state aid for another year

October 12, 2011|By Claudia Vargas, Inquirer Staff Writer

Despite Gov. Christie's goal of weaning Camden off state aid, more than two-thirds of the city's budget will be funded by Trenton again this fiscal year.

Camden will receive $61.4 million in transitional aid, which goes to New Jersey's most economically distressed cities, the Department of Community Affairs (DCA) announced late Friday.

Though $6 million less than Camden requested, the award is nearly triple the $22 million designated for the state capital, which received the second-largest amount.

"We get $23 million in taxes. . . . We can't change that overnight. Even if we got $30 million [in taxes], we would still need help," Camden Finance Director Glynn Jones said.

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"Camden is not going to be able to get off transitional aid in the next four years," he said.

The aid allocation is contingent on the Legislature's passing a measure that would require recipients to be financially accountable to the DCA, a sticking point during the budget process.

"I'm not going to give this money away without the appropriate funding and oversight mechanisms," Christie said after announcing this summer that he would restore $149 million in transitional aid.

Senate President Stephen Sweeney (D., Gloucester) "hopes to review the issue with the governor in the near future," a spokesman wrote in an e-mail Tuesday.

Bill Dressel, executive director of the New Jersey League of Municipalities, said he hoped the Legislature would act by Thanksgiving.

Camden last year received $115 million from Trenton, not including aid to schools - 66 percent of the city's total budget. That sum included $69 million in transitional aid.

This year, its state aid total is $107.4 million, or 68 percent of the budget.

"Although we did not receive the full amount requested, we are confident that the difference will be offset by the $4.7 million in savings from the governor's pension reforms and a potential adjustment in our unemployment billing," Mayor Dana L. Redd said in a statement Monday.

No city employees, including fire and police personnel, are expected to be laid off, she has said.

Camden had planned to pay $19.3 million in April when its pension payment came due. It now will pay about $14.6 million.

Christie's recently enacted pension overhaul increased public employee contributions and made other changes expected to result in significant savings to cities.

The lower costs "will be sustained over time," said state Treasury Department spokesman Bill Quinn.

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