UPDATED: Boro Begins 2012 Budget Process

Madison has begun the process of putting together the operating budget for 2012.

Borough Administrator Ray Codey in an interview at said that the preliminary budget process began Monday with initial meetings among municipal department heads.

The process kicked off earlier this year than in the past as the borough is working with a new electronic format designed to make communications among departments more efficient.

The early, deliberative process will not be online and is not available for public distribution.

Historically, officials haven’t begun the budget process until November.

Codey said the first draft of the budget should be available to the public by early November.

Municipalities operate under a 2% tax levy cap with certain exceptions such as debt service, healthcare, and pension increases.

Madison’s budget totaled $24,438,696 in 2011.

The borough will be working under a number of prospective scenarios as details of several major budget elements won’t be known until next year.

• Both the borough and the police union are awaiting an arbitrator’s decision on a new contract. Codey said that decision now isn’t expected until September at the earliest;
• Pensions: State aid figures regarding pensions will not be available until 2012;
• Healthcare premiums: While many municipal employees have switched to a less expensive managed plan, again, the exact figures won’t be known for some time;
• Schools spending: The won’t be known and voted on by residents until next year. Schools spending increases are also capped at 2% annually.