Municipalities are being hit with double-digit losses in aid from Trenton

How will Shore communities fare, under municipal aid cuts for fiscal year 2011? As the Department of Community Affairs released aid figures, the Division of Local Government Services posted a local finance notice, explaining the reductions were made based on tax rates and wealth:

 

“Under this approach, “wealth” is calculated by measuring per capita income and equalized property value per capita. This approach is similar to the way school aid formulas use wealth. Taxes were measured by using the equalized property rate. Similar to last year, the calculation placed municipalities into nine groups based on low, medium, and high equalized tax rates and wealth.”

 

A majority of Monmouth and Ocean County municipalities are grouped as medium rate and medium income, and face a 20.45-percent aid reduction. That includes Brick, Howell, Jackson, Lakewood, Manchester, Middletown and Toms River.

 

At the high end of the scale, 24 lowest tax burden communities with the highest incomes saw a 26.45-percent aid reduction, including Rumson. In the high rate/high income group, Freehold Township faces a 23.45-percent reduction. Belmar and Beach Haven each fall into the low rate/medium income group, for a 21.95-percent aid decline. Asbury Park is considered medium rate/low income, for a 15.95-percent cut.

 

The table below shows the grouping, percent reduction, and number and percent of municipalities in each group, for the entire state:

 

Grouping	% Reduction	# Affected	% of Municipalities
1- Low rate/High income	26.45%	24	4.2
2- Medium rate/high income	24.95%	12	2.1
3- High rate/high income	23.45%	123	21.7
4- Low rate/medium income	21.95%	52	9.2
5- Medium rate/Medium income	20.45%	248	43.8
6- High rate/medium income	18.95%	16	2.8
7- Low rate/low income	17.45%	42	7.4
8- Medium rate /low income	15.95%	33	5.8
9- High rate/low income	14.45%	16	2.8
		566	100%