Councilman LaBarbiera on the Budget at The Council Meeting

I would also like to speak to this year’s budget. As you have been reading in the paper daily, we are going through very difficult economic times; and as you have been hearing from the Mayor, Paramus residents are not exempt. What compounds the problem for Paramus is that our businesses which make up a larger part of the tax base than almost all communities are on the front line and we can see the casualties as we drive rte 17 and rte 4.

Reduced tax revenue combined with escalating operating costs such as salaries, health insurance, and pensions have resulted in a challenging budget to say the least. The solution can not be to simply pass on additional tax to the already stretched homeowners or mortgage the future; but rather the answer is the only tried and tested method and that is to reduce spending. We can get through this but must do so by sharing the burden and asking all to sacrifice. So tonight I am asking Council to support resolution for the following initiatives:

1. Seek voluntary furlough of 110 hrs from all employees of the Borough through 1 of 4 means:
• 4 day work week
• Reduce work day by 1 hr
These two options would result in approx 6% reduction in salary.
We know some might not be able to afford this reduction and would offer the following two alternatives:
• Give back unused sick time or vacation; or
• Work overtime without compensation and receive 1.5 hr credit against 110 hr obligation

2. Review all contracts in regard to vehicle use and insure compliance.

3. Seek 10% adjustment in all professional fees.

Salaries and professional fees make up approx 42% of the Boroughs budget and these initiatives could result in a reduction of operating budget by approx $1.5 m. Does this $1.5m solve all of budget problems? Absolutely not. But it helps, and this council will look at cutting all aspects of operating and capital budget.

I also understand there are contractual issues and instituting these initiatives will require concessions, but the public worker and professionals are not insulated from the economic crisis and at the end of the day they work for the taxpayer who can not afford anymore taxes! I am optimistic that the Administrator and all the unions will work together; or otherwise this council will be faced with much harder decisions.

Again, these are difficult times but by sharing the burden we can get through what will hopefully be short term problem and maintain Paramus’ taxes and in turn, property values.

Richard LaBarbiera