Budget is presented before Statutory January 15th Deadline for the 21st Consecutive Year
Photo By Glen Freison
NEWARK – On Friday, January 12th, Essex County Executive Joseph N. DiVincenzo, Jr. presented a balanced and responsible 2024 budget of $858.7 million that includes a 1.75 percent property increase and addresses the challenges due to the ongoing national economic conditions and rising costs due to inflation. DiVincenzo has limited tax increases to an average of just 0.85 percent over the last five years and layoffs have been avoided since 2004. The County Executive has presented the County Budget before the State’s statutory deadline of January 15th for 21 consecutive years.
“Our 2024 budget that we are presenting today increases Essex County property taxes by just 1.75 percent, which is significantly lower than the state cap of 2.0 percent. This recognizes the financial hardships our residents have faced through the Coronavirus pandemic as well as rising costs we all are experiencing because of inflation,” DiVincenzo said. “Developing our annual budget is a serious matter and creates the financial plan that the county will follow for the upcoming year. Presenting it by January 15th enables us to identify the complex challenges facing government and address them early. It also gives our municipal partners and constituents a clear snapshot of what to expect from the county,” he added.
The County Executive pointed out that his administration monitors the budget throughout the year and started preparing the 2024 budget in July 2023. Getting an early start enabled Department and Division Directors, Constitutional Officers and County agencies to identify and address issues, investigate ways to reduce expenses and generate new revenue, and have a plan in place by the statutory January 15th deadline. “This rigorous planning and constant vigilance have helped us to respond proactively when we are faced with challenges brought on by the national economy, unexpected events or new laws,” DiVincenzo said.
Commissioner President Carlos Pomares described the presented budget as “responsible” and “sound.” “We all have a very challenging job, but the budget is the most important. It is the backbone to everything we do and is the reason why Essex County has been so successful,” added Pomares, who was joined by Vice President Tyshammie Cooper and Commissioners Brendan Gill, Len Luciano, Wayne Richardson and Patricia Sebold.
This constant attention to detail in preparing the budget has enabled Essex County to do the following:
- The 2024 budget includes a 1.75 percent property tax increase. The State cap allows governmental operating budgets to increase property taxes up to 2.0 percent annually.
- Over the last five years, property tax increases have been limited to an average of 0.85 percent and, over the last 10 years, Essex County has held the average increase in property taxes to about 1.08 percent, which is significantly below the state cap of 2.0 percent.
- Over the last 21 years, Essex County has held the average increase in property taxes to about 2.04 percent, which is the fourth lowest percentage rate of increase of all New Jersey counties behind Hunterdon, Monmouth and Burlington counties.
- Starting in 2007, DiVincenzo implemented a “debt diet” initiative to stabilize the County’s debt service by refinancing existing debt without extending its maturity date and limiting the amount of new debt to a maximum of $20 million annually. In 2024, the debt service payment is $102.2 million, which will be reduced to just $59.2 million in 2029.
- DiVincenzo has downsized the County workforce by not filling open positions unless they are essential to public safety and public health operations. This includes positions such as nurses at the Hospital Center or Corrections Officers at the Correctional Facility. Under DiVincenzo’s leadership, over the last 21 years, Essex County’s workforce has been reduced from a high of more than 4,000 employees in 2003 to 3,564 in the 2024 budget proposal.
- Over the years, Essex County has built a strong fund balance by realizing savings in previous years’ budgets. The fund balance projected for 2024 is about $90.2 million. This reserve helps the County respond to emergencies, displays fiscal stability to bond rating agencies and has helped improve the County’s cash flow and avoid taking out Tax Anticipation Notes. (When DiVincenzo took office in 2003, the previous administration left a budget deficit of $64 million.)
- $36 million in fund balance is being used as revenue in the 2024 budget.
- Under DiVincenzo’s direction, the county continually looks for new opportunities for recurring revenue, which includes shared service agreements with other governments and government agencies and new fees. The 2024 budget is projected to have about $116.69 million of new, recurring revenue, which lessens the County’s reliance on raising property taxes.
The DiVincenzo administration has worked hard since 2003 to eliminate the structural budget deficit and ensure that Essex does not spend more than the revenue it collects. Austere budgeting, downsizing the workforce, eliminating unnecessary contracts and conservative spending practices have strengthened Essex County’s financial position and restored the County’s fiscal health.
The 2024 budget proposal has been forwarded to the Essex County Board of County Commissioners for review.
