Senator Pennacchio: “Cut Special Municipal Aid from State Budget”Could Save Taxpayers $200 million a year 

Senator Joe Pennacchio (R-26) is answering the Governor’s call to find cuts in state spending, as opposed to increasing tolls, in order to balance the budget and pay down state debt. Senator Pennacchio is calling on the Governor to use his constitutional authority to remove Special Aid to municipalities throughout the state.  

“As with state aid to schools, municipal aid reduces the amount local government must fund through property taxes, Pennacchio stated. “However, just like school aid, this money is allocated disproportionally to districts by a Democratic Governor and a Democrat controlled state Legislature.”

Last year, under Governor Corzine’s 2008 state budget proposal, special aid was increased by $37.3 million. The Governor is expected to introduce his 2009 state budget in February.

“The way these funds are allocated is outdated, ineffective and outright wrong,” concluded Pennacchio. “If Governor Corzine is serious about cutting back state spending and offering real property tax relief to homeowners, ending the practice of special municipal aid from the state budget is a $200 million step in the right direction.”

This is the second suggestion Senator Pennacchio has suggested in as many days. Eliminating special municipal aid, coupled with the Senator’s suggestion to end Christmas tree spending could, according to Senator Pennacchio, save taxpayers nearly $300 million a year.