N.J. Republicans take aim at city aid program

New Jersey Senate Republicans plan to take aim today at a state aid program that funnels money to a handful of financially struggling cities, including Camden, arguing that such support rewards bad management without demanding accountability or improvement.

They have hammered at the program for several years, questioning how the money has been doled out and saying funding intended for short-term fixes has turned into permanent subsidies from the state's taxpayers.

"No city is held accountable for horrifically bad spending practices," Sen. Marcia Karrow (R., Hunterdon) said in a news release. "This year, even more than the past, New Jersey can't afford to write big checks to towns that have no plan for getting their finances under control today or any time in the future."

Officials in the Corzine administration say the program helps cities provide vital services and comes with increased monitoring, audits, and hiring freezes.

"Without these funds, these municipalities could not provide the most essential of services for their residents," said Chris Donnelly, a spokesman for the state Department of Community Affairs.

The department's commissioner, Joseph Doria, is to appear before the Senate budget committee today to discuss his department's spending plans, which include the aid program. It has become an annual target for Republicans.

The debate this year will come against a backdrop of financial struggles at all levels of government and one day after the latest award, a $5 million lifeline for Jersey City. Last week the state gave $56.35 million to Camden and smaller amounts to Bridgeton and Paterson.

The "special municipal aid" program was created to provide short-term support for struggling municipalities, but an audit last year raised questions about its growth and some cities' annual reliance on the state's backing.

The program has grown from $41 million in fiscal year 2005 to $132.6 million in the current spending plan, though it was as large as $174.7 million two years ago. Gov. Corzine's new budget proposal includes $142.4 million in special municipal aid.

Eight cities are expected to receive funding this year. Five have been in the program for six years or more since 2000. Camden and Paterson are going into their 10th years in the program.

Asbury Park, Harrison, Newark, and Union City will also likely receive awards in the coming weeks.

Of the 12 cities and towns that applied for aid, eight received support, three got money from a separate program called "extraordinary aid," and one, Hoboken, was denied, according to Donnelly.

Until recently there was no formal application process, but Doria implemented one in the fall of 2007.

Donnelly said municipalities that accept special municipal aid must also abide by restrictions on how the money is spent and have been told to consider furloughs or layoffs to save money.

"As part of the program, the idea is to eventually wean them off so they don't need this aid, but at the same time they're facing some extraordinarily difficult circumstances where they need this aid," Donnelly said.

Republicans argue that the cities should be forced to furlough or lay off workers. Camden and Newark have taken such steps.