$770M Proposed Budget In Essex County Would Mean Small Tax Hike

ESSEX COUNTY, NJ — Essex County Executive Joseph DiVincenzo Jr. has released a $770 million budget proposal that would “hold the line” at a 0.5 percent tax increase for local homeowners, officials announced Tuesday.

The 2021 budget is also projected to have about $104.2 million of “new, recurring revenue,” which county officials said will lessen the reliance on raising property taxes.

The budget proposal has been forwarded to the Essex County Board of County Commissioners for review.

According to a statement from DiVincenzo’s office, over the last 19 years, Essex County has held the increase in property taxes to about 2.19 percent, which is the fifth-lowest percentage rate of increase among all New Jersey counties, behind only Hunterdon, Monmouth, Burlington and Somerset counties.

• See related article: NJ Releases Average Tax Bills For Essex County Towns

County taxes are one part of a local homeowner’s property tax bill, along with school and municipal dues.

“We have worked aggressively over the last 18 years to address long-standing issues affecting Essex County and strengthen our finances,” DiVincenzo said.

“These past few years, we have seen the fruits of our labor – getting a Aaa bond rating, helping Newark accelerate the replacement of its lead water service lines and partnering with our municipalities and public school districts to purchase equipment,” he added. “These would not have been possible if we did not remain vigilant about keeping our financial house in order.”

Some highlights from the proposed 2021 budget include:

• STAFF REDUCTIONS - Over the last 19 years, Essex County’s workforce has been reduced from a high of almost 4,000 employees in 2003 to 3,542 in the 2021 budget proposal. According to DiVincenzo, the staff reduction has been accomplished mainly by not filling open positions unless they are “essential to public safety and public health.” Layoffs have been avoided since 2004.
• FUND BALANCE – DiVincenzo’s office said the fund balance projected for 2021 is about $71.9 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 for the last five years,” spokespeople said, noting that when DiVincenzo took office in 2003, the previous administration left a budget deficit of $64 million. About $36 million in fund balance is being used as revenue in the 2021 budget.
• DEBT DIET – In 2021, the county’s debt service payment is $127.2 million, which will be reduced to $47.2 million in 2028, officials said.

PRISON REVENUE

Over recent years, some advocates have begun to question a major source of revenue for the county: its ongoing contract with U.S. Immigration and Customs Enforcement (ICE) at the Essex County Correctional Facility in Newark.

Essex County has been contracting to house undocumented immigrants awaiting deportation since 2011, making an estimated $15 to $20 million in profit from a contract that was expected to create more than $42 million in revenue in 2019. ICE pays Essex County $120 per day for each detainee.

Family members and advocates have been protesting for years to get the county to nix its contract with ICE.

Patch asked a county spokesperson how much revenue is being estimated for the county's contract with ICE in this year’s proposed budget. We’ll update this article with any reply.

Send local news tips and correction requests to eric.kiefer@patch.com

Learn more about posting announcements or events to your local Patch site. Sign up for Patch email newsletters.