By STEVE PRISAMENT
Staff Writer

GALLOWAY TOWNSHIP – The township’s proposed $23,706,246 budget for 2008, introduced by Township Council Tuesday, March 25, would raise the municipal tax rate by 7 cents for every $100 of property valuation.

The total budget, up 8.1 percent from last year’s $21,926,687, increases the amount to be raised by local taxation from $11,549,314 in 2007 to $13,045,826 in 2008, an increase of $1,496,512 or 13 percent.

With an anticipated new tax rate for municipal services of $.678 per $100 of assessed value, the owner of a home assessed at $200,000 would pay $140 more in local taxes this year.

A public hearing and final vote on the budget has been tentatively scheduled for the Tuesday, April 22 council meeting.

Township Manager Jill Gougher pointed out a number of factors to explain the increases including an expected rise in expenses of $1,411,188. Major increases include pension costs, $487,552; debt service, $371,449, and police salaries, $257,898.

She also cited a number of significant declines and slow-downs in revenue and aid.

Gougher said that economic uncertainties “are impacting our local and state economies similar to the impact on the national economy.”

Galloway Township, she said, has shown a sluggish growth in new tax ratables.

“In prior years the township averaged between $70 and $80 million in new construction,” Gougher said. “In 2007 we were only able to realize $24 million in new ratables.”

The result was a $60,000 less in construction fees.

Reduced fee revenues, combined with a $233,632 loss in state aid, a $117,566 reduction in grant revenue and a $291,462 loss of available surplus contributed to a total loss of $702,660 in available revenue.

In general, a new state cap on tax levies, loss in state aid and significant increases in state pension costs have made preparation of the 2008 budget extremely difficult, she said.  The difficult situation also means that more work needs to be done.

“It should be noted that this budget has undergone significant cuts since initially presented to me by department heads and, of course, is subject to further revisions by council before final adoption,” Gougher said.

Gougher praised the efforts of township staff required to put the budget together.

“I cannot thank the staff and department personnel enough for their contributions on helping develop this budget,” Gougher said. “The commitment and joint effort of all departments is commendable. They were given an almost unattainable mission — continue to offer the same quality services at a significantly reduced cost and in most cases with reduced staff.”

Through attrition there are seven fewer employees on the township payroll this year than there were a year ago, she said.

She also thanked the council members and the members of the citizens’ budget committee.

“The introduction tonight is a continuation,” she said. “There are still difficult decisions to make for this budget year as well as moving forward. We will continue to explore possible cuts, consolidations, and shared service agreements and possible new sources of revenue to offset the increases in taxation. The 2008 budget is a work in progress.”

She said the budget follows a “modified zero-based budget format” where expenditures are evaluated for each program by objectives at several levels of service.

“The preparation of the 2008 budget reflects an effort towards balancing the appropriate levels of service with the financial impact of taxation that is necessary to provide these services,” Gougher said. “This serves to evaluate the priority of services provided by the Township to determine the ideal level of service given the available revenues for the fiscal year.”

To view the budget online, go to www.gallowaytwp-nj.gov and find it in the Community Events and Calendar section.