Essex County May Hike Property Taxes For Homeowners: 2024 Budget

ESSEX COUNTY, NJ — A tax hike is in the cards for homeowners in Essex County if the administration’s proposed 2024 budget crosses the finish line.

Essex County Executive Joseph DiVincenzo Jr. presented a $858.7 million spending plan on Friday. If it crosses the finish line, the budget would mean a 1.75 percent tax increase for local property owners.

Property taxes in New Jersey are mostly made up of three parts: school, municipal and county. See Related: Highest NJ Property Taxes (See Where Your Town Ranks On New List)

Last year’s county spending plan also included a tax increase for local homeowners. See Related: Tax Hike Expected In 2023 Essex County Budget, Official Says

DiVincenzo pointed out that the proposed tax hike is below the state’s cap of 2 percent. Over the past five years, Essex County tax increases have averaged 0.08 percent – but layoffs to the workforce have bene avoided since 2004.

According to the county executive, reasons for the tax increase include “challenges due to the ongoing national economic conditions and rising costs due to inflation.”

“Developing our annual budget is a serious matter and creates the financial plan that the county will follow for the upcoming year,” DiVincenzo said. “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 2024 budget proposal has been forwarded to the Essex County Board of County Commissioners for review. It has seen support from at least one commissioner: President Carlos Pomares.

The commissioner president said the county executive’s budget proposal is “responsible and “sound.”

“We all have a very challenging job, but the budget is the most important,” Pomares said. “It is the backbone to everything we do and is the reason why Essex County has been so successful.”

DiVincenzo’s office provided the following additional statements about the proposed 2024 county budget:

21 YEAR AVERAGE – “Over the last 21 years, Essex County has held the average increase in property taxes to about 2.04 percent, which is the fourth lowest percentage rate of increase of all New Jersey counties behind Hunterdon, Monmouth and Burlington counties.”

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 2024, the debt service payment is $102.2 million, which will be reduced to just $59.2 million in 2029.

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 [Essex County Correctional Facility]. Under DiVincenzo’s leadership, over the last 21 years, Essex County’s workforce has been reduced from a high of more than 4,000 employees in 2003 to 3,564 in the 2024 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 2024 is about $90.2 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. (When DiVincenzo took office in 2003, the previous administration left a budget deficit of $64 million.)” $36 million in fund balance is being used as revenue in the 2024 budget.

RECURRING REVENUE – “Under DiVincenzo’s direction, the county continually looks for new opportunities for recurring revenue, which includes shared service agreements with other governments and government agencies and new fees. The 2024 budget is projected to have about $116.69 million of new, recurring revenue, which lessens the county’s reliance on raising property taxes.”

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