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Camden County Freeholders Introduce 2010 Budget

The Camden County Freeholders introduced a 2010 budget of $323 million today that increases employee contribution toward
health benefit costs, freezes wages for all employees not covered by current union contracts, contains a wage cut for elected officials, and
imposes four furlough days for all non-public safety employees and raises taxes
a net 2.3 percent.
 
“The Camden County Board of Freeholders understands that our number one job is to fight for the taxpayers.  This means the lowest possible taxes, the best possible services and use of the most contemporary business strategies,” said Freeholder Director Louis Cappelli, Jr.  “To that end, we reduced the tax levy, the amount taxpayers pay to fund county government, for three consecutive years (2007, 2008, 2009), reduced the workforce by 600 over the past five years, and fought for union contracts that require employees to pay a portion of health benefit costs. That fight continues with commitment to long-term structural change that will make government more efficient and cost-effective.”
 
This year’s budget reflects the grim realities of the national economic crisis and a statewide budget crisis that has cut an estimated $1.8 million in direct funding and several million more in funding to county agencies that the county government supports. These cuts come on top of mandated cost increases like a $1 million dollar hike in pension costs, a $5 million dollar increase in health insurance and the continuation of drastically reduced revenues because of a depressed housing market. Additionally there was the cost – in excess of $1 million dollars – of the historic storms this past winter.
 
To combat these circumstances, the Freeholders are fighting back with every tool at their disposal, including calling on the legislature and the governor to reform the antiquated laws that preclude them from implementing sound management practices.  Civil service reform is among our top recommendations. Civil service is perhaps the greatest road block to effective management. Additionally, the Freeholders have developed 34 legislative recommendations which would dramatically reduce the cost of government.
 
“The pain found in the 2010 Camden County budget stretches far and wide. No agency within the umbrella of county government has been untouched and most have seen their funding cut substantially,” said Cappelli.
 
To cope with the unprecedented impact of State cuts and mandated cost increases, the Freeholder Board’s fight for the taxpayers in 2010 will require them to impose: a second year of a salary freeze on all personnel not covered by current union contracts; refuse to accept a 2010 salary increase in any of the union contracts currently under negotiation; a one-year cut in all elected officials’ salaries; and, enact a furlough program of 4 days for all non-public safety employees.
 
In addition to these measures, the Freeholders have assessed all of the various services the county provides with a “back to basics” mentality.  They’ve taken a fresh look at all the services which are not mandated and are not considered “core” functions of county government such as education or public safety. All department and agency budgets have been cut to help fill the budget gap.
 
However, even with all these measures, due to an unprecedented downturn in the economy, declining revenues, increased fixed costs, and the need to continue to provide essential services, the Freeholders have had to include a modest net 2.3 percent increase in taxes ($6 million) for 2010.
 
The County tax rate will be 61 cents, up 3 cents from last year.  Five years ago, the tax rate was 76 cents and 10 years ago the tax rate was 86 cents. What this year’s 3-cent increase  means to an individual taxpayer is,  whose house is assessed at market value,  is that there will be an increase of $30 on a house assessed at $100,000, $60 on a house assessed at $200,000, etc. That’s $2.50 a month increase on a $100,000 home and a $5 a month increase on a $200,000 home.
 
“I want to assure the taxpayers of Camden County that this Board of Freeholders understands that you make sacrifices everyday. This budget affirms that government must sacrifice, too. That sacrifice begins with the Freeholders themselves and extends to our employees. We have been dealt a tough hand that has required some tough decisions. We’ve done the best possible job without eliminating essential services. We will continue to fight for taxpayers and their families. This remains our number one priority,” Freeholder Director Cappelli said.
 
There will be a special meeting on June 10 at 7 p.m. at the Emergency Training Center in Blackwood to adopt the budget.  The budget will be posted on the county website Wednesday morning.
 
Here are the overview and highlights:
 
Camden County started with a 2010 budget deficit of over $35 million.  Some of the major causes are as follows:
 
  • Increase in employee compensation costs (Medical benefits, pension, etc.)
  • Loss of state revenue (Prosecutor, College, Tech School, and Health Services Center)
  • Reduction of non-tax revenue (Interest income, register of deeds, etc.)
  • Reduction in surplus funds as an item of revenue
  • Increases in general operating expenses including utilities for county facilities; food and medical at the jail, etc.
 
The County has taken the following measures in order to eliminate this deficit:
 
  • Increased revenue as a result of requiring contribution toward health benefit costs from all employees
  • 2010 wage freeze for all employees; many for the second year in a row
  • Imposed four furlough days for all non-public safety employees
  • One-year suspension of the 2-cent open space land preservation tax
  • Significantly reduced concerts and other special events
  • Eliminated CCMUA rebate
  • Reduced or froze funding to county’s outside agencies
  • Revamped the flu program to focus on the most vulnerable residents
  • Reduced administrative costs in the delivery of human services by private social services agencies
  • Selling land not needed for public purposes
  • Utilized excess surplus from the CCMUA, pursuant to statute
  • Increased revenue from taxpayers in the amount of $6 million or 2.3%.