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UNION COUNTY GOVERNMENT 2011 Executive Budget GEORGE W. DEVANNEY County Manager Table of Contents COUNTY OF UNION 2011 Executive Budget Table of Contents Page County Manager Letter to Board of Chosen Freeholders Organizational Chart Financial Overview Overview of County Government Clerk of the Board ................................................................................... 1 Office of Communication and Public Information Office of Open Space, Recreation and Historic Preservation Trust Fund County Counsel ..................................................................................... 15 Department of Administrative Services ................................................ 23 Department of Correctional Services .................................................... 44 Department of Engineering, Public Works, Facilities Management & Park Maintenance ............................... 54 Department of Finance .......................................................................... 89 Department of Human Services ............................................................. 95 Department of Parks and Community Renewal .................................. 123 Department of Public Safety ................................................................ 182 Runnells Specialized Hospital ............................................................. 197 Office of the County Clerk .................................................................. 205 Office of the Prosecutor ....................................................................... 213 Office of the Sheriff ............................................................................. 217 Office of the Surrogate ........................................................................ 221 Board of Elections ............................................................................... 231 Rutgers Cooperative Extension ........................................................... 235 Superintendent of Schools ................................................................... 253 Board of Taxation ................................................................................ 264 County Manager Letter to Board of Chosen Freeholders B O A R D O F C H O S E N F REEHOLDERS BOARD OF CHOSEN FREEHOLDERS March 16, 2011 __________________________ DEBORAH P. SCANLON Chairman The Honorable Chairman Deborah P. Scanlon ALEXANDER MIRABELLA Members, Union County Board of Chosen Freeholders Vice Chairman Union County Administration Building LINDA CARTER Elizabethtown Plaza ANGEL G. ESTRADA Elizabeth, NJ 07207-2204 CHRISTOPHER HUDAK MOHAMED S. JALLOH Dear Freeholders: BETTE JANE KOWALSKI DANIEL P. SULLIVAN The 2011 Executive Budget is contained in this document for your review NANCY WARD and approval in compliance with N.J.S.A. 40:41A-1 et Seq., the Optional County Charter Law. GEORGE W. DEVANNEY County Manager New Jersey’s problem on the overreliance on property taxes is well M. ELIZABETH GENIEVICH, documented. This most regressive form of taxation unfortunately hits C.M.C., M.P.A. Deputy County Manager/ homeowners hardest. Here in Union County, property taxes on the average Director of Administrative home are approximately $9,000 of which the County portion is about $1,700 Services or around 18 percent. ROBERT E. BARRY, ESQ. County Counsel This Executive Budget meets the State-mandated Cap. Union County has NICOLE L. DIRADO, C.M.C., M.P.A. been working hard for a number of years to make that happen. Clerk of the Board We began with a set of reforms we call our “Union County Toolkit.” We didn’t wait for Trenton to get going on reforms. Without our action, Union County would have been forced to look at draconian cuts that would impact health care at Runnells Specialized Hospital, public safety, education, economic development and job creation. We took a number of steps that have saved us more than $10 million in the past few years. These savings will continue this year as well. First, we froze wages. All elected officials and many non-contractual employees have had their wages frozen for over three years—saving approximately $2.3 million during this period. ADMINISTRATION BUILDING Elizabethtown Plaza El iza bet h , NJ 0720 7 (9 08) 52 7- 4 100 fax(908)289 - 4143 www.ucnj.org We’re Connected to You! Eight public employee unions had their wages frozen in 2010 and three—including CWA---have their wages frozen in 2011. County Police and Corrections Officers accepted a zero percent raise this past year, as well as Council 8 (the largest County union). Trenton is still talking about having public employees contribute more to their benefit plan, capping sick time, and vacation time. However, we have already done that. We began the process of having employees contribute more to their benefits package more than ten years ago---and it has saved the County a million dollars a year. Fourteen unions agreed to increase contributions to their prescription drug plans and voted for higher contributions for new employees. The new rates are nearly double the State-mandated rate. Other reforms included: ¾ Annualized savings of $4.7 million achieved through a total of 103 vacancy eliminations, retiree position eliminations and layoffs in 2009. As part of this plan, we abolished the division of engineering, and have contracted for these services with the private sector. ¾ Refinancing in 2009 of $77.4 million in debt that is saving a total of $4 million over a nine-year period, including 2011. ¾ Reduction of overtime at the jail by $2.5 million over the past three years. Now I will address the proposed 2011 Executive Budget which meets the State Cap. The County’s average tax bill is about $1,700—which represents an increase of $108 this year. This year, we are once again taking measures to ensure fiscal stability. We reformed the purchasing of insurance by joining a County Joint Insurance fund. By joining with other counties, we use our joint purchasing powers to obtain lower rates, saving $1 million in premiums. Additionally, we have been reducing our operating expenses over the past few years, and this year have cut an additional $1 million across the board. We are taking additional steps in the fiscal turnaround of our golf division, by executing the second portion of our contract with KemperSports, who will take over the maintenance of our golf courses. They will also continue to manage our clubhouse operations. Since 2009, we have seen a $1 million dollar turnaround in gross revenues from our Golf Division and realized a profit of $140,000. Despite the continuing debate in Trenton, a complete “toolkit” has yet to be realized. Unfortunately while the State’s fiscal year proposed 2012 budget was able to keep municipal aid stable and provides a modest increase for school funding, Union County suffered unforeseen State cuts which have negatively impacted Runnells Specialized Hospital and our Corrections Department. 2 The State reductions have cost the County $10.5 million in revenues at our essential 24/7 facilities with little recourse to recover these costs. In 2009, the County received $4 million in revenues for retaining State prisoners at the County Jail. The State has now cut that number to $1 million---a $3 million reduction. Runnells Specialized Hospital broke even in 2009. In 2011, however, State cuts in funding have created a $7.5 million revenue gap. We are currently appealing and challenging the State’s methods for determining Medicaid payment rates for nursing facility services provided by Runnells. The stagnant economy has further impacted revenue sources at the County level while State and Federal mandates continue to rise. The national decline in the real estate market has dealt Union County a double blow. Revenues from the County Clerk’s office fell from a high of over $12 million in 2005 to $6 million. Similarly, the County’s ratable base has also declined from $78 billion to $71 billion over the past few years. Mandated costs—salaries, pensions, and health insurance---increased approximately $18 million. Health insurance and pension costs climbed 18 and 22 percent, respectively, an increase of about $12 million. Overall, despite the loss of $10.5 million from State cuts, we have been able to maintain a budget that meets the State Cap and continues to provide essential services such as Meals on Wheels, Union County College, our Prosecutor’s Office, the Bomb and Hazmat squads, and One Stop Job training centers. Besides the implementation of our toolkit, we’ve been able to maintain fiscal stability in part through the creation of innovative ideas in providing tax relief, and sparking economic development. For example, we announced a long-term $276 million tax relief plan for Union County. The plan, which is unique to Union County, cuts waste disposal costs for all and shares the revenues with participating municipalities. The 14 participating municipalities will realize $12-$14 dollars a ton in savings, just for continuing in the plan. Participating municipalities save big: Elizabeth saves $700,000, Union saves $300,000, Plainfield saves $250,000 and Summit saves $100,000. It was all done by extending a lease and nothing else. When we built our State-mandated juvenile detention center a few years ago, we had the vision to build a facility with additional capacity to create a new revenue source. This pays off for County taxpayers with the introduction of two contracts—one to provide beds for the U.S. Department of Health and Human Services---and another to 3 provide beds for the County