Choi, council members at odds over budget BY JAY BODAS Staff Writer EDISON - The Township Council will introduce its amended municipal budget for the 2006-07 year at tonight's meeting. The council will introduce its $105,715,002 budget for next year, having slashed nearly $4 million from Mayor Jun Choi's originally proposed budget of $109,626,232. The proposed tax hike for next year has been reduced from 13.5 cents to an 8-cent increase for each $100 of assessed valuation, said councilman Antonio Massaro. "We cut it a nickel-plus," Massaro said. "There were some sentiments to cut it even more, but we agreed on an 8-cent tax hike. We certainly did not end up with a deficit, as was discussed at the beginning of the year. We were told we would have to face a 13-cent tax hike or refinance bonds. We did not do either but still got it below 9 cents." The most significant single line item cut from the budget was $1.5 million for tax appeals. Another $800,000 was pared from accumulated leave compensation, according to a copy of the proposed budget resolution. Much of the cuts came from the "reserves" the administration was trying to "build up," Massaro said. "For example, Mayor Choi wanted to build up by $800,000 the line item for sick leave when people retire," he said. "But there was already a fund with $1.4 million in it, and nothing had been withdrawn from it this year. Plus, no department director told us any employee was ready to leave." However, Choi said the amended budget represented a "very shortsighted" view on the part of the council. "We deliberately proposed a budget that does longer-term fiscal planning," Choi said. "I support the lowest possible tax rate for Edison residents, but we have to pass a budget that is responsible to taxpayers for both the short and long term." The two largest line items that were cut represented "obligations" that the township had to fulfill, the mayor said. "Regarding the tax appeals line item, our estimated tax liability I would estimate is more than $5 million, meaning that over time, the township has to pay $5 million," Choi said. "We, in preparation for this, recommended a $1.5 million appropriation to fulfill an obligation." For the accumulated leave compensation line item, the township's severance liability is $6.04 million, Choi said. "In the first 10 months of the calendar year, we had over 30 employees retire for a net reduction of over 40 employees," he said. "And every year, you have retirements, so that is just the nature of the game." Choi also criticized other cuts proposed by the Township Council. "A full-time grant writer we proposed was cut even though a grant writer would pay for himself or herself several times over and accelerate the pace of new revenues being generated," he said. "And we wanted to hire 12 professional EMTs, which would have improved our emergency response. This also would have generated a profit for our community, because for every call we respond to via a professional instead of a volunteer, we receive an insurance payment, which is a profit for our community." Councilman Charles Tomaro agreed that the cuts went too far and were made "without planning for the future." "The worst case scenario is that you would not have the budget surpluses we had this year a few years from now," he said. "We are looking at possibly an 8-cent tax increase next year already - 5 from salary and wages, and 3 from pensions, as those are fixed costs." But Councilwoman Antonia Ricigliano said that even more budget cuts should be made. "I am certain we can go lower than an 8-cent tax increase," she said. "I will find it very hard to vote yes for it. It was very clear to me that even at 6 cents, there was still wiggle room, and nothing detrimental would have happened to the township, the taxpayers, or to our employees." Councilman Peter Barnes said he was "leaning toward" supporting the budget, but would wait until tonight to make his final decision. "Let me first hear the comments from my colleagues on the finance committee and what the mayor has to say," Barnes said. $1.5 million appropriation to fulfill an obligation." For the accumulated leave compensation line item, the township's severance liability is $6.04 million, Choi said. "In the first 10 months of the calendar year, we had over 30 employees retire for a net reduction of over 40 employees," he said. "And every year, you have retirements, so that is just the nature of the game." Choi also criticized other cuts proposed by the Township Council. "A full-time grant writer we proposed was cut even though a grant writer would pay for himself or herself several times over and accelerate the pace of new revenues being generated," he said. "And we wanted to hire 12 professional EMTs, which would have improved our emergency response. This also would have generated a profit for our community, because for every call we respond to via a professional instead of a volunteer, we receive an insurance payment, which is a profit for our community." Councilman Charles Tomaro agreed that the cuts went too far and were made "without planning for the future." "The worst case scenario is that you would not have the budget surpluses we had this year a few years from now," he said. "We are looking at possibly an 8-cent tax increase next year already - 5 from salary and wages, and 3 from pensions, as those are fixed costs." But Councilwoman Antonia Ricigliano said that even more budget cuts should be made. "I am certain we can go lower than an 8-cent tax increase," she said. "I will find it very hard to vote yes for it. It was very clear to me that even at 6 cents, there was still wiggle room, and nothing detrimental would have happened to the township, the taxpayers, or to our employees." Councilman Peter Barnes said he was "leaning toward" supporting the budget, but would wait until tonight to make his final decision. "Let me first hear the comments from my colleagues on the finance committee and what the mayor has to say," Barnes said.