Roth: Manalapan’s Tentative Budget is “Fiscally Irresponsible”

In recent times, Democratic Committeewoman Michelle Roth has often been the lone voice of objection on the Manalapan Township Committee.

During a Committee meeting last week, she didn’t hesitate to once again voice her objections, this time to the proposed 2011 budget.

The 2011 budget, available for viewing through the township website or by clicking here, represents a decrease in spending from 2010. Roth cites several problems with the budget as it was .

Roth's key arguments were as follows:

• Mayor Lucas is not using surplus money wisely, and the township’s use of surplus is down  from $5.2 to $4.3 million. She alleges that Lucas wasted $2 million of surplus money in 2010 and “flippantly called it Enron-like accounting,” she said. “I’d like to see him have that same discussion with the governing bodies in Freehold, Marlboro and Middletown who used that accounting tool to ease taxpayer burden and used all the tools at their disposal.”
• The budget anticipates construction revenue of $900,000, up from $550,000. “This is being done during the worst recession in recent memory and a probably depression in the building industry,” said Roth.
• Manalapan’s tax collection protection has decreased by $216,000, and the budget does not adequately prepare for a decline in return. “So in essence, he’s (Mayor Lucas is) just taking a bet that during the worst housing and employment market in recent history, we’re going to continue to collect at the same rate and not build in any sort of cushion in the event that we don’t,” said Roth.
• In terms of expenses, Roth cites recycling as a major concern. She called Manalapan’s recycling numbers “abysmal”. The fact that Manalapan Township recycles less raises the township’s tipping fees with the county.  Roth is the liaison to the environmental committee and has studied the methods of other towns. Some have saved up to $250,000 by hiring a part-time employee who concentrates on increasing recycling efforts; Roth favors the idea.
• Roth was disappointed that the snow line on the budget was cut by $90,000 “especially with the winter that we just had,” she said. “So with the reduced surplus where are we going to get budget transfers from next year?” she asked.
• The budget does not look three years into the future, which Roth says it should. The budget as it stands now does not account for increased costs in Municipal Service Agreements and mandates for pensions and health benefits.

“Budgets should be a forward-looking document. You don’t budget for the short-term,” said Roth. “Companies that budget for the short term get themselves into problems; so do governments,” she added.  

Roth said that the township should be budgeting for the long-term with a three-year consideration. She also said that there is no cushion for emergency transfers. She used the example of snow removal costs such as the $750,000 that was transferred this year.

“It’s in my opinion irresponsible budgeting to use the surplus the way it’s been used,” said Roth, citing the construction revenue and the reserve for uncollected taxes as two major concerns.

“I think this is a fiscally irresponsible budget and I think it’s a self-fulfilling prophesy for him (Lucas) because in 2004 he claimed that Manalapan was insolvent. And I think with his budgeting skill, we’re getting there,” she added.

Roth encouraged the other Committee members to “sharpen their pencils” and take another look at the budget.

According to Township Administrator Tara Lovrich, once the budget is introduced, amendments can be made at four percent of the total levy and ten percent per each line item.   

Mayor Lucas then put Roth on the hot seat by asking if she’d like to provide some solutions to the problems that she mentioned.

Roth responded that this conversation was relegated to the last minute and only received her book Friday, March 18.

 “It’s so interesting how you’ve been operating this year,” said Roth. “And it’s been not on a committee basis, it’s been on an Andrew Lucas basis.”

She said she would be happy to sit down with the governing body, the Township Administrator and CFO Patricia Addario to discuss solutions.

Deputy Mayor Ryan Green said that Roth’s comments remind him of the movie “Groundhog Day”, in that she made similar speech last year.

“It’s hard for me to look ahead to the future and share in Mrs. Roth’s sense of gloom and doom,” said Green. He feels that this budget does looks to the future and shares in Committeeman Jordan Maskowitz’s view that the township must do whatever it can to avoid raising taxes.

He noted that Manalapan-Englishtown school district and Manalapan Fire Company No. 1 have already announced that they intend to raise taxes, and indicated that the county might as well.

On March 24, however, the Asbury Park Press reported that the county introduced a 2011 budget that maintains a flat tax rate without sacrificing services or programs.    

“There is certainly plenty of tax raising going around, which I’m sure Mrs. Roth appreciates, but on our front, for the Manalapan municipal budget, I’m proud of the fact that’s we’re looking at 2011 without raising taxes, and I encourage the Township Committee to endorse the budget tonight as is proposed,” said Green.

“Personally, I put in a lot of time, and I know everybody else has. And I’m in favor of this proposal myself,” said Committeeman Don Holland.

Holland has announced that he will be switching parties in time for a fall reelection campaign. He told Patch that by the Manalapan Democrats who have been displeased with him for supporting the Republican majority’s budgets.

Lucas insisted that the Committee has looked to the future in planning the budget. He plans to find more ways to cut spending for a fiscally responsible budget.

The Committee will look to adopt the budget in May.

As of Wednesday’s meeting, the budget introduction was approved on a 4-1 vote with Roth’s dissent.

Download the movie