The Jersey City Council unanimously approved (9-0) a resolution to submit a state transitional aid application “for upwards of more than 100 million dollars” at last night’s marathon meeting that went until nearly midnight.
By Daniel Ulloa and John Heinis/Hudson County View
“To the administration, the city currently receives state aid correct?” Councilman at-Large Rolando Lavarro asked Acting Business Administrator Peter Horton, to which he replied that state aid comes in various forms and would be hard to quantify off hand.
Rolando continued by inquiring how state aid is different from transitional aid.
“How does state aid differ from transitional aid?” Lavarro asked.
“It’s contingent upon financial distress of a city …. It comes with specific guidelines,” Horton said.
Further, Lavarro questioned how long the transitional aid would last for, which Horton said the goal would be for three years, part of a five-year plan to balance the budget, which currently has a quarter billion dollar deficit.
Horton also noted that the city is released from the transitional aid program after they determine their financial status no longer requires the assistance. Lavarro also wanted to know what state oversight would look like.
The acting BA said the state would appoint a monitor who amends the budget process and makes sure they’re in compliance with their guidelines.
Lavarro noted that the resolution did not included a number, and while Horton said the application isn’t finished yet but is due Friday.
When pressed, he stated: “I believe we’re potentially looking at receiving upwards of more than 100 million dollars from the state, and again, that would probably trickle down the longer we were on it and the need decreases.”
He added that there are a lot of complicated conversations with the state that still need to take place, so now was not the time to get into all the specifics.
Ward F Councilperson Frank “Educational” Gilmore noted it’s a late item and asked if there were consequences in delaying the vote.
“If we don’t have council approval, we can’t submit the application. We have to submit the application by the 27th,” Horton reiterated.
Corporation Counsel Sarah Levine admitted that the application deadline wasn’t identified until Friday, to which Gilmore said he was disappointed he didn’t have time to review the item.
“If it wasn’t extraordinary we wouldn’t bring it to you. Again, we found out late,” Horton emphasized.
Ward C Councilman Tom Zuppa, an attorney by trade, also had questions.
“The state could take over our hiring practices right?” he directed at Horton.
“We have to run through all actions of purchasing procurement, hiring, firing, anything that would affect any obligations and non-discretionary funding of the city we have to run by them,” Horton explained.
“Including re-evaluation, re-assessment of property right? Is the administration looking to undo things the prior administration did? Or are we only looking forward?” Zuppa asked.
“We don’t want to decrease services to residents. As the mayor said, everything is on the table.”
Zuppa also expressed his displeasure at the late item, but said he would reluctantly support it.
“I do think we do have to support this but I am concerned about the state oversight and having a monitor … for an extended amount of time,” he noted.
Ward D Councilman Jake Ephros wanted to know what fiscal controls the monitor would have.
“They would have override power over everything in the city: They could veto everything,” Horton replied.
Ephros asked if it’s for an indefinite period.
“As soon as we stop receiving the aid … then we return to normal,” Horton said. Ephros expressed concern that there was no timeline, to which Horton said it has to be applied for annually.
“Countries have ambitious policy goals to meet the needs of their people. But because of the global economic system they’re in financial distress … they have to be subjected to austerity, to really barbarous neoliberal regime … It’s a hard pill to swallow,” Ephros added.
During the vote, Ward B Councilman Joel Brooks said he had faith in the administration to fix the dire financial situation as quickly and efficiently as possible.
“ … We have inherited a terrible situation, and I’ll speak for myself, I’m willing to put my faith in the administration to go through this potentially painful monitoring situation this calendar year,” he stated.
Ward E Councilwoman Eleana Little echoed the same sentiment about the timing issue before Ward F Councilman Frank “Educational” Gilmore said he had real concerns about the rushed process, stating this was the last time he would vote for a late item without time to review it thoroughly.
“ … This is not a good process, but I also will say it’s not their fault: We are inheriting a massive budget structural deficit and this is a responsible move to do, although it’s, I don’t want to sugarcoat it: It brings real challenges and some uncertainty for Jersey City in being under a state monitor in that sense,” Lavarro expressed before voting aye.
The council approved the measure unanimously (9-0).
New Jersey Department of Community Affairs spokeswoman Lisa Ryan said on Friday afternoon that there are no guarantees when a municipality applies for transitional aid.
“Jersey City must demonstrate a specific monetary request as it relates to any Transitional Aid consideration,” she told HCV in an email.
Even when it does, there is no guarantee the State will fund the specific request in full, or at all, based on the availability of Transitional Aid funding for local governments.”
Editor’s note: This story was updated on Friday with a comment from New Jersey Department of Community Affairs spokeswoman Lisa Ryan.
Hmmmm ….<$100,000,000,000