Camden, Trenton, Union City, Paterson and Lawnside would each be awarded special aid
Bill Dressel, Executive Director of the League of Municipalities pictured in this file photo. According to Dressel, if the N.J. legislature waits beyond November, or fails to come to an agreement, cities could start to see serious cash flow issues.TRENTON — Five of the state’s most fiscally distressed cities have been approved to split $117 million in special state aid, according to state numbers released today.
But the cities won’t see a dime of that aid until Republican Gov. Chris Christie and Democrats who run the Legislature break their months-old gridlock on the issue.
Under the transitional aid program, officials announced Camden would be get $61.4; Trenton $22 million; Paterson, $21 million; Union City, $12 million and Lawnside in Camden County, $700,000.
Christie allocated $149 million for the fund in his proposed budget. When Democrats presented their own budget in June, they removed a clause to use $1.4 million of that to fund state oversight for the cities.
Christie responded by using his line item veto power to eliminate all but $10 million from the fund until lawmakers agree to restore the oversight. He later proposed legislation restoring the funds, but said he would not sign it without the oversight.
The bill, sponsored by Sen. Kevin O’Toole (R-Essex) is not scheduled for a committee hearing or a vote, and is not on the agenda for the Senate Budget Committee, which meets Thursday.
Democrats oppose spending $1.4 million on state oversight, saying that money should go back into the cities. But the Christie administration has said the oversight is critical, as the Department of Community Affairs has identified areas for cost savings and helped struggling towns reign in spending.
In a statement, Christie today encouraged the Legislature to take up the proposal, "so we can continue to assist these municipalities with responsible spending and budgeting practices."
Spokespeople for Democratic leaders said they have no timetable to take up the issue.
"Discussions between the Senate and Assembly are ongoing," said Christopher Donnelly, a spokesman for Senate President Stephen Sweeney (D-Gloucester). "The Senate President hopes to review the issue with the governor in the near future."
Tom Hester Jr., a spokesman for the Assembly Democrats, said he expects "everyone will work cooperatively on this."
"We remain pleased the governor has seen the error of his ways and moved to restore the money," Hester said. "But we’re still reviewing budget cuts and continue to have additional concerns."
While officials in the cities believe the aid will be restored, advocates for municipalities say that without a deal freeing the money, cities could start to see cash flow problems.
"It’s going to be extremely critical that this gets done early to mid-November," said Bill Dressel, executive director of the state League of Municipalities. "They need the monies in the coffers in order to pay their bills and in order to keep police on the street."
Lisa Ryan, a spokeswoman for DCA, said some towns have indicated they could have cash flow problems as early as November. "Some municipalities may be unable to make payroll for their employees or pay other essential bills," she said.
Officials for the towns today expressed confidence that the Legislature will restore the money.
"I’m not panicking right now," said David Rousseau, head of the finance department for Trenton. "I think the legislature will do They just didn’t want to deal with this before the election."
Hester said if a cash flow emergency arises, legislators can move funds to cities. However, the governor would have to initiate such payments.