Franklin among towns to lose some state aid

Money to recoup may come from surplus FRANKLIN — While it may be the season to be jolly, the state of New Jersey is playing Scrooge. About 400 of the state’s 566 municipalities have learned they may have to do without some of the state aid already promised because the state is withholding nearly $21 million in aid to help close a $1 billion shortfall. Franklin is one of those 400 towns, and it is not taking the news lightly. “I don’t know what gives them the right to hold back on our money,” complained borough administrator Richard R. Wolak. “Maybe they need to develop a new mechanism. I’ve seen them make cuts, but they just pulled this out of their hats.” Franklin’s Mayor Paul Crowley agreed. “I’ve never heard of them changing their minds like this,” he said. “This was budgeted and given to the towns, and the towns relied on it.” The money being withheld is the state’s December payment to towns. A group of municipalities is considering filing suit over the issue. See related story page 11. Sussex County, the state’s northernmost district, is among the hardest hit. Franklin is earmarked to lose about $3,800 in aid, which the borough most likely will make up by tapping into its surplus funds, borough officials agreed. However, the loss of nearly $4,000 from surplus means Franklin’s rainy day fund is shrinking, ahead of what most feel will be a difficult budgetary year in 2010. “You have to have something in reserve just in case some unexpected financial expenses come in,” Wolak said. Railing against the state’s late notification, he said: “If you’re not going to give it to us, tell us right up front. They’re not the only ones with budget issues.” Grant Rome, the borough’s chief financial officer, noted that while the total loss for Franklin isn’t great, the loss of budgetary power is troublesome. “It’s not a big amount of money, but the big concern of it is that they’re holding back state aid, which they already promised us,” he said. “There is some concern, yes. And this is something the mayor and council have no control over.”