Tax Hike Expected In 2023 Essex County Budget, Official Says

ESSEX COUNTY, NJ — A tax hike may be on the way in Essex County, officials announced Wednesday.

Essex County Executive Joseph DiVincenzo Jr. has presented an $885.4 million budget for 2023. Homeowners would see the county portion of their property taxes rise by about 1.5 percent under the proposed spending plan.

Property taxes in New Jersey are made up of three parts: school, municipal and county. In 2021, the average property owner paid roughly 52.9 percent of their total for school taxes, 29.4 percent for municipal taxes and 17.8 percent for county taxes.

Partly attributing the potential county tax hike to “ongoing national economic conditions and rising costs due to inflation,” DiVincenzo said his proposal is “balanced and responsible,” and is “significantly lower” than the state cap of 2 percent.

DiVincenzo was among the local officials who warned of a potential property tax hike in the fall of 2022, when a vote from the State Health Benefits Commission cleared the way for an estimated double digit rise in health insurance rates for government workers across New Jersey. Read More: Rallies, Outrage In Essex County Over NJ Health Care Hikes

“Developing our annual budget is a serious matter and sets the financial plan that the county will follow for the upcoming year,” DiVincenzo said Wednesday. “Presenting it by January 15 enables us to identify the complex challenges facing government and address them early. It also gives our municipal partners and constituents a clear snapshot of what to expect from the county.”

The county has limited tax increases to 0.6 percent over the last five years, and about 1.06 percent over the past decade. And over the last 20 years, Essex County has held the increase in property taxes to about 2.05 percent, which is the fourth lowest percentage rate of increase of all New Jersey counties behind Hunterdon, Monmouth and Burlington counties, DiVincenzo said.

Layoffs have been avoided since 2004, he added.

Other budget highlights from DiVincenzo’s office included:

DEBT DIET – “Starting in 2007, DiVincenzo implemented a ‘debt diet’ initiative to stabilize the county’s debt service by refinancing existing debt without extending its maturity date and limiting the amount of new debt to a maximum of $20 million annually. In 2023, the debt service payment is $134 million, which will be reduced to just $59.8 million in 2028.”

DOWNSIZED WORKFORCE – “DiVincenzo has downsized the county workforce by not filling open positions unless they are essential to public safety and public health operations. This includes positions such as nurses at the Hospital Center or Corrections Officers at the Correctional Facility … Over the last 20 years, Essex County’s workforce has been reduced from a high of more than 4,000 employees in 2003 to 3,557 in the 2023 budget proposal.”

FUND BALANCE – “Over the years, Essex County has built a strong fund balance by realizing savings in previous years’ budgets. The fund balance projected for 2023 is about $90.1 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 six years. $36 million in fund balance is being used as revenue in the 2023 budget.”

RECURRING REVENUE – “The 2023 budget is projected to have about $113.98 million of new, recurring revenue, which lessens the county’s reliance on raising property taxes.”

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

“I commend Joe’s team and our 3,500 employees for making sure Essex County is always moving forward,” said Commissioner President Wayne Richardson, who was accompanied at Wednesday’s news conference by Commissioner Vice President Carlos Pomares and Commissioners Brendan Gill, Patricia Sebold, Len Luciano and Robert Mercado.

“On behalf of the county commissioners, we will work with the county executive to make sure this continues to happen,” Richardson said.

Property taxes are one of the biggest recurring gripes for people living in Essex County, which was one of four in New Jersey with the highest median bills in the entire nation, according to a recent study from The Tax Foundation.

• See related article: See Highest, Lowest Property Taxes In Essex County By Town
• See related article: Tax Gap In Essex County; Many Wealthier Towns Pay Lower Rates

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