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Kenilworth officials warn of tighter municipal budget; school state-aid figures complicate outlook
Summary
Council members and borough financial staff said municipal revenues have fallen while some expenditures (notably health insurance) have risen. Borough officials are working to keep any municipal tax increase below statutory caps; board of education aid changes further complicate overall local tax pressure.
Councilman Morrow, chair of the borough finance committee, told the governing body the committee and borough finance staff are “working through some tough situations” as they finalize the municipal budget for the coming year.
Morrow said the borough is seeing decreased revenues across most categories and higher expenditures in several lines, including health insurance. He quantified part of that pressure: “The decrease in revenues per average assessed house is coming in at $13.06,” he said, adding that while the per-house amount looks modest, it compounds across the tax base.
Borough financial staff and the finance committee said they are trying to keep any municipal tax increase below the statutory appropriations cap and tax levy caps; as of the meeting the draft budget exceeded those caps and required additional adjustments. The borough CFO said work is ongoing to avoid cutting services while meeting the required deadlines.
Changes in state aid to the public schools are affecting the municipal fiscal picture. The borough CFO said the Board of Education’s budget reflected a reduction of roughly $275,000 in state aid compared with the prior, pre-adjustment level; council members and staff also referenced a $660,000 additional state-aid figure that had been included previously. The CFO said timing of some state decisions — including potential reinstatements of relief funds by June 30 — make final budget numbers uncertain until late in the fiscal cycle.
Council members and staff agreed to continue intensive review. The borough’s budget is due at the next meeting cycle; staff indicated the governing body would work to present an introduction by the April meeting and continue adjusting revenue and expenditure assumptions until the legally required deadlines.
Ending: Borough finance leaders said they are trying to produce a budget that preserves services while staying within state caps; they will return with a proposed introduction at the next meeting and will continue to inform the public as numbers are finalized.
