McHOSE AND CHIUSANO CRITICIZE LOCAL FINANCE BOARD’S DECISION TO ALLOCATE $45 MILLION IN ADDITIONAL AID TO NEWARK

McHOSE AND CHIUSANO CRITICIZE LOCAL FINANCE BOARD’S DECISION TO ALLOCATE $45 MILLION IN ADDITIONAL AID TO NEWARK         

As news of the state’s Local Finance Board’s decision to grant the City of Newark an additional $45 million in aid, Assemblywoman Alison Littell McHose and Assemblyman Gary Chiusano, both R-Sussex, Morris, Hunterdon, said they are surprised, but not totally shocked at the award.  The unanimous vote by the board allocates funds to distressed cities through the Special Municipal Aid program which it oversees.

“It is astounding that the state can find the money to allocate to a city that already receives more than its fair share of state aid while it squeezes rural municipalities to pay for its police coverage and slashes property tax relief,” stated McHose.  “Once again, taxpayers from across the state are bailing out inefficient urban governments while the state turns its back on the property tax crisis in suburban and rural areas.  In New Jersey, it does not benefit a town to operate efficiently and with fiscally sound policies as long as this administration is in charge.”           

The Special Municipal Aid program is designed to give grants to a number of urban municipalities with structural deficits that cannot be resolved without additional state aid.  However, many feel it has operated without consistent standards, criteria, and even accountability.  Further, until recently, a formal application form to receive aid under the program was non-existent.

“For too long this program has operated under a shroud of secrecy,” stated Chiusano. “When news like this hits the suburban and rural communities, it only reinforces the sense that some cities are favored over everyone else in this state.  This program cries out for reform though transparency, accountability, and equity.”

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