Happy Taxgiving Day!

This morning, the State announced that Trenton will receive $27.1 Million in Transitional Aid for the Fiscal Year Ending June 30, 2011 budget. This is about $13 Million less than requested, about 2/3 of our ask.

The gap between ask and award will, presumably need to be made up by an increased tax levy. As discussed earlier this month in this space, adding back the approximate $9 Million that the Mayor added to the city’s budget by dropping or postponing the scheduled layoffs of police and fire personnel announced earlier this year will increase our budget deficit.

With this morning’s numbers announced, it looks that my earlier estimate of an additional $1.45 per $100 tax increase may be a little high. It looks to me that the tax increase – without any further budget adds, cuts or revenues – will be in the vicinity of $1.15 or so. That means an additional $1150 for a house assessed at $100,000. Oh, boy. Expect to hear more about this!

It is likely too late in the budget year for this effort to make any difference, but the Fix Trenton’s Budget group made their presentation to City Council last night, with a description of a suggested priorities-based budget process for the City. Having such a process in place might not improve the city’s finances by itself, but it should go a long way toward allowing the city and all its citizens have more control over its spending goals, and how well it can track our success in meeting those goals. Find out more here.

Have a terrific Thanksgiving Holiday, everyone! Despite everything, we always have so much to give thanks for.