The 2020 Lawrence Township Municipal Budget and Covid-19

Hey Everyone!  Last night at the municipal council meeting, the 2020  Lawrence Township Budget was ADOPTED by our municipal governing body.  The meeting was conducted (pursuant to NJ Law and in compliance with the notice requirements under NJ’s Open Public Meetings Act) via conference call available to anyone wishing to listen and participate at public comment.  Since no members of the public chose to participate in the call, I wanted to share with you my comments that I placed on the record before the vote was taken on the budget’s adoption.  They were as follows (in quotes):

“The Lawrence Township 2020 Municipal Budget is presented to you for approval. 

As we discussed when [at the Introduction of the budget] it was presented to you in our March meeting, we have modified the budget to provide for possible additional expenses directly related to the Coronavirus pandemic.  Specifically, we increased “Salary and Wages” by $30,000, and $105,000 in other expenses under Municipal Manager Appropriations for a total increase of $135,000 from the original budget pre Covid-19. 

The budget offered to you for adoption provides for a 2 cent increase [originally it was 1.7 cent increase].   1 cent = $463,052 and, therefore, 2 Cents = $926,104.66 tax levy increase.  The amount to be raised by taxes is $27,644,378.

The total budget is $50,521,239.02.  It is a balanced budget and conforms to all applicable state budget statutes.

The increase in appropriations exceeds our 2.5% appropriations CAP.  However, the Township has sufficient appropriation cab bank for use.  The increase in Tax Levy is still under the Levy Cap and, in fact, will add to our Levy Cap Bank. 

The full impact of Pandemic upon municipal finances cannot be accurately known at this time.  We will have a better sense of it after our 3^rd Quarter taxes are collected. 

State Aid for 2020 has been certified to be $3,982,565.  We do not foresee this amount being withdrawn since it has been certified.” However, as we sit here tonight, we have no idea what 2021 will bring us in terms of State support towards our budget.”  END OF MY COMMENTS.

Also, please note that the increases made to the 2020 Budget are our best estimation of the potential Covid-19 related additional expenses for this year.  The funds made available can be used to hire temporary employees (should our work force decrease due to illness or other Covid-19 circumstances) and to purchase goods and supplies to address Covid-19 related issues. 

When I discussed these changes to budget at the time it was introduced to the Mayor and Council at the public meeting last month, I made the commitment that any amount that was not used, would be returned and credited towards the 2021 budget.  This is not a money grab.  NJ Budget Law requires that ONLY budgeted money may be spent by a municipality.  As a result, if it is not budgeted, it cannot be spent.  And that is not a position we want to put our community in during this serious public health crisis.  

Based upon discussions among my peers, there is a universal understanding that revenues normally received each year by a municipalities will be significantly less than what the budget provides for and we, as a community, will have to address those losses responsibly to maintain services the municipal government is required to provide to the community.  But we will be in a better position to assess this situation later in the year. 

The Budget documents are posted on our municipal website at www.lawrencetwp.com.  

And to those who hate all things tax related (I am included in this group), I simply remind you that the municipal government is required by law to collect your property taxes.  Your property taxes include the School Tax (53.25%), the County Tax (25.55%), the Municipal Tax (20.14) and Open Space Tax (1.06).  So if your property tax bill is $8,000, the municipal tax (the only tax that is under the authority of the municipal government and your elected officials) is approximately $1600.  Just a kind reminder……to not make us responsible for ALL property taxes collected!