Jersey Journal Feb. 23, 2009

Dear Commissioner Doria:

The City of Jersey City has introduced a budget that proposes to eliminate an approximate $15M expenditure for municipal employee contributions obligated by the city.

Jersey City is one of many municipalities under the DCA?s distressed city program ? requiring DCA guidance and approval for financial decisions and strategies.

City officials are quoted in news items regarding the budget introduction as stating they are anticipating that the state legislature will be passing a bill that will provide municipalities with the authority to defer their pension funding obligation for workers.

The city obviously has chosen a strategy that will enable it to send out lower quarterly tax bills in May, based upon the uncertainty of the passage of legislation. If the legislation isn?t passed, Jersey City taxpayers will be slammed hard in the next quarterly tax statements.

Most recently, Jersey City?s neighbor, Hoboken, was penalized by the State DCA for making decisions on state pension related matters without state approval. I, therefore, assume the city has received the permission of the DCA to waive its pension obligation and that taxpayers wont be penalized should the legislation permitting such action does not pass.

I would further note that the city has proposed an ordinance to exceed the state budget cap by 1%. This, also, I assume, is with DCA permission.

The Governor in his recent State of the State address spoke of further cuts to state aid for municipalities. How can the DCA allow for the city?s budget to proceed with a questionable $15M expenditure being written off and a 1% cap increase?

Can the DCA assure city taxpayers that Trenton will issue additional state aid to cover the budget shortfalls or increases being proposed by the city?

Thank you for a prompt response to my concerns.

Respectfully,



Louis M. Manzo
Former State Assemblyman