PERTH AMBOY – State officials approved the city’s request to move from a fiscal year to a calendar year municipal budget cycle, a move intended to give local leaders more time to address a $5.2 million budget gap.
A transitional budget, totaling approximately $38 million, will be presented to the City Council soon, according to city officials. The sixth month budget, covering from July 1 through Dec. 31, will not include a tax increase but will also not address Perth Amboy’s budget crunch.
Administration officials will be able to delay addressing an estimated $5.2 million budget gap until they begin working on the 2011 spending plan. The city learned it is not likely to again receive $3.5 million in extraordinary aid as it did this year. In addition, Perth Amboy will receive $1.7 million less than it did this past fiscal year from the Consolidated Municipal Property Relief Act.
Mayor Wilda Diaz announced the change in the city’s budgeting cycle at last week’s City Council meeting. Council President Peter Jimenez supports the change, but cautioned residents that it’s just a temporary solution to a problem that will still need to be addressed.
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