New Suggestions in Budget Call for Freeze on Raises

In the aftermath of the aid reductions announced by the state two weeks ago, Borough Administrator Ray Codey and Chief Financial Officer Robert Kalafut have recommended a number of adjustments from the original suggested budget, including the elimination of raises to all borough employees.

The original suggested budget brought to the Borough Council did not include the reduction in aid announced two weeks ago. Following Gov. Chris Christie's budget address, the state announced Madison would receive $227,383 less than what it received in 2009.

Codey and Kalafut spoke with the council Thursday night at a special  meeting to try to find cuts to reduce the proposed original suggested budget by $1,174,321 to reach the allowable tax levy

Prior to the reduction in aid, the borough was looking for $1,235,000 to make the 4 percent cap allowable by law.

A two percent wage increase was included in the original suggested budget. However, Codey and Kalafut are attempting to negotiate with borough departments and their unions for a freeze on salaries, hiring, promotion, and the elimination of non-essential overtime following the aid reduction.

The borough officially laid off two part-time employees on Thursday. Due to the borough's new contract with the Madison Area YMCA for teen services, the council at a prior meeting voted to terminate the Madison Teen Center along with its director Ray Kalas and assistant director Christopher Bias. Also off the books is the borough's welfare director position, as Linda Durney has stepped down and that service will now go through the county.

For the majority of the meeting, the council looked item by item for reductions to make the tax cap. However, Council President Jeannie Tsukamoto recommended something that Mayor Mary-Anna Holden referred to thereafter as the "Jeannie Rule," a proposal to reduce money to groups and organizations by 10 percent accross the board. Sub-accounts and operating accounts would also be subject to that possible 10 percent reduction. Members of the council also expressed interest in seeing a more detailed breakdown on what groups were spending their allocated money on.

"These are not grants, these are for services we deem important to residents," Councilman Bob Conley said. "We should be able to get from these organizations how these monies are beings used."

Codey also said that a 10 percent reduction in all borough department operating budgets will be called for. He also added that, unlike in the past, if a department went above a certain part of its budget, it would have to find the money somewhere else in its own funds and budget and would not be allowed to come to the borough for more money.

"The courtesy would be to say to department heads 'you have first crack as to where you want to allocate it, then if you don't we'll make the reductions,' " Codey said to the council.

The council set its executive meeting on April 12 for 6 p.m., before a 7 p.m. county traffic study meeting and the council's regular meeting at 8 p.m. Codey and the council referenced looking at personnel that may need to be reduced if negotiations with department unions fail to cut the budget in ways that will allow it to get under the cap.