By BILL BARLOW/Special to the Sentinel
UPPER TOWNSHIP – Township Committee faces the unenviable task of trimming about $400,000 from budget proposals submitted by department heads in order to come within state budget limits this year, Committeeman John Coggins reported to Township Committee on Jan. 25.
Speaking at the first of a planned series of budget workshops, Coggins discussed the differences between last year’s budget and the amounts requested this year. He said future meetings would delve further into potential cuts.
The total proposed spending comes in at more than $14.8 million, Coggins reported at the hour-long workshop held before the regular meeting. That’s more than $1 million over last year, he said.
The biggest increases are in salaries and wages, up $241,000, and health care benefits, up $287,000.
But the township’s final budget will need to stay within the state-imposed 2 percent cap on spending increases, Coggins said. The township must also make sure it has enough revenue to cover its expenses.
Earlier in the day, he said, he met with township auditor Leon Costello, who put the total revenue shortfall at $560,000, along with expenses that will need to be trimmed by $400,000.
“Now, we have some proposals for that, but before we start digging into the nuts and bolts,” he said, the committee went over the difference in each department between the spending that took place last year and what is proposed for 2021.
This was merely the start of the budget process. In other years, committee members wrangled over budget areas to trim before reaching a consensus on the spending plan that was ultimately introduced and approved.
One area where spending was expected to increase was for the mayor and committee. The elected representatives have a wage increase proposed for this year, along with a request for a $2,000 donation from Volunteers in Medicine, a group that provides medical care for those who could not otherwise afford it.
“We’re a taxing agency, and I’m not opposed to donating money, but at this point I don’t think that’s something a taxing agency should do,” said Committeeman Curtis Corson. He said he would encourage residents to support the organization but would not support using tax money. “Where does it stop? We don’t donate to everything that comes down the pike.”
Mayor Rich Palombo responded that much of the funding for the organization comes from municipalities.
“In a very small way, we can facilitate some people that are struggling,” he said.
There were no decisions made at the workshop meeting.
“Let’s put a star on that and get back to it,” Palombo said.
The amount under consideration would make little difference in the overall budget, considering the amount that needs to be cut.
“We’re going to have to really comb through there and look for opportunities,” Coggins said.
Several departments were requesting increases of several thousand dollars, some were up tens of thousands.
Some areas are non-negotiable, Coggins said. For instance, the township’s contract for regional dispatch services is set to increase by about $17,000.
“That’s part of a shared services contract,” he said.
The potential for the township to switch to Cape May County’s centralized dispatch service was also discussed at the meeting. At the workshop, Corson said the reliability was not yet good enough in the north end of the county.
“In the future we might be able to make the leap and there would be some savings probably, but right now I can’t in good faith recommend it for our first responders,” he said.
Discussions of potential cuts will likely take place at a future meeting. As with so much else, the impact of COVID-19 was seen throughout the discussion, both in terms of expenses and in revenues. That included discussions on when the municipal courts may again return to in-person sessions.
The next workshop is planned for 6 p.m. on Feb. 8, in a virtual session before the regular meeting.