Essex County Budget 2017: Jails, Taxes and Jobs

ESSEX COUNTY, NJ — For the 14th consecutive year, Essex County has released a proposed budget before the state’s statutory deadline. But where are county officials planning to get the revenue that will help them bring their “balanced and responsible” 2017 budget proposal to life?

On Jan. 11, Essex County Executive Joseph DiVincenzo Jr. presented a 2017 proposed budget of $715.3 million to the Essex County Board of Chosen Freeholders for review.

The proposed budget will come with a 1.5% tax increase. Over the last five years, Essex County has held the increase in property taxes to about 1.8%, which is under the state cap of 2 percent, officials said.

“Presenting our budget by Jan. 15 is important because it gives our municipal partners and constituents a clear snapshot of what to expect from the county,” DiVincenzo emphasized.

A county news release about the proposed budget gave several highlights about its planned expenditures and revenue sources.

Notably, a key portion of the county’s revenue may be made off the backs of prisoners and patients from the state hospital. According to officials:

• The Essex County Correctional Facility is anticipated to generate $36.8 million in revenue by housing federal inmates, immigration detainees and inmates from Gloucester County
• The Essex County Hospital Center is anticipated to generate $14.8 million in revenue through reimbursements from the state for admitting patients from the state, Passaic County and Middlesex County
• The Juvenile Detention Facility is anticipated to generate $3 million by accepting juvenile detainees from Passaic County

According to county officials, here are some other highlights from the proposed 2017 budget:

• The Essex County Parks Department is anticipated to generate about $14.9 million in revenue from admissions and user fees.
• A snow bank and mosquito control reserve continue to be maintained. These dedicated accounts have funds set aside for their specific purposes and allow the county to respond to emergencies without making additional appropriations or budget transfers.
• $15 million in fund balance is being used as revenue in the 2017 budget. In addition, because of savings in the previous budget, the total fund balance will increase to about $77.2 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 three years.
• $5 million is fund balance is being used for IT upgrades and heavy equipment purchases.

DiVincenzo added that his goal is to have Essex County’s bond rating elevated to a AAA rating, beyond its current rating of AA2 with a positive outlook, which is “the highest it’s been in modern times.”

DiVincenzo said that open county positions have been left unfilled unless they are “essential to public safety and public health operations,” such as nurses at the Hospital Center or corrections officers at the Correctional Facility.

If the 2017 budget is approved, Essex County will have slashed 450 workers from its payroll since 2003, officials stated.

• See related article: Embattled West Caldwell Prison Company Keeps Getting N.J. Contracts
• See related article: ICE Immigrant Detainee Dies In Essex County: Prisoner Death Toll Increases

Photo: Flickr Commons

Send local news tips, photos and press releases to eric.kiefer@patch.com