Burlington County Freeholders recently adopted a $199.8 million budget cutting the amount of tax dollars needed to run county government by $6.2 million, making this the fifth year in a row that the tax levy has been reduced.
The budget also calls for a hefty cut in spending of $17.1 million and a reduction in the county tax rate from 30.96 cents per $100 of equalized valuation to 30.91 cents. This marks the 22nd year in a row the rate has been cut.
Since 2007, taxes have been cut a total $14.7 million and spending has been reduced a total $26.8 million for the same period.
“These multi-million dollar reductions in taxes and spending did not come easily but, once again, they come at a time when they are needed most,” said Freeholder Director Bruce Garganio. “Let the record reflect that county government has responded to residents and taxpayers who are still struggling to get by in a difficult economic environment.”
“At the same time, this budget sends a powerful message to current and prospective businesses, and our residents who are looking for employment: we are doing everything possible to instill a favorable tax policy, to enhance economic growth, and to create jobs,” Garganio said.
According to Garganio, the tax savings have been realized despite an estimate shortfall of $15 million when budget planning began months ago.
Major reductions in health benefits costs of more than $4 million, the outsourcing of the county’s transportation services, continued freezes in salary and wages for non-union personnel, and in hiring, and the sale of Buttonwood Hospital, all factored into the final budget document.
“The reality is that you will find significant cuts in most departments and most line items, but core programs and services remain intact,” Garganio said.
The 2012 budget is well within both the appropriation CAP and tax levy CAP imposed by the state. The amount to be raised by taxation is nearly $9.6 million less than the amount permitted by law.
Garganio noted that declining tax ratables from $50 billion to $48.2 billion factored heavily into the budget shortfall. He said an additional decline in ratables was expected in 2013.
“We’re already crunching numbers for the next budget year,” he said. “It’s not going to get any easier.”
