Tough Budget Season Is Anticipated By Chester Township Mayor  

CHESTER, NJ — As work on the Chester Township municipal budget for 2023–24 continues, Mayor Michael Inganamort recently discussed the financial strain placed on the township this year, making budgeting more difficult.

One major issue that Inganamort focused on was the state's continued increase in costs, which put the township well over the two percent tax cap.

The state surprised all New Jersey municipalities, including Chester Township, earlier this fall with a 20 percent increase in healthcare insurance rates, prompting local governments to pass resolutions opposing the increase in an effort to fight back.

Under the new healthcare proposals, hundreds of thousands of New Jersey public employees, early retirees, and school employees could face rate increases of up to 20 percent for health benefits.

Another factor that had to be factored into the budget was a 19 percent increase in pension costs. The increased spending is required by state law to cover the pension benefits earned by employees who are members of the Public Employees' Retirement System and the Police and Firemen's Retirement System.

"As most people know, Chester Township faces a state-mandated 22 percent increase in healthcare premium costs and a state-mandated 19 percent increase in pension costs. In real dollars, these are approximately $276,000 plus another $120,000," Inganamort said.

To balance the budget and avoid exceeding the two percent property tax levy cap and the appropriations cap, township officials had to cut other areas of the budget.

"This was the most difficult budget process Chester Township has faced in more than a decade," Inganamort said.

The planned budget cuts include eliminating any additional funding for road paving and snow removal. These are critical services, reduced to pay instead for a growing state entitlement program," Inganamort said.

The council said that despite an approximate $230,000 decrease in discretionary spending, the mandatory and contractual increases still leave the budget with a net increase of roughly $171,000, which equates to a 1.93 percent tax levy increase.

Conversations regarding the budget are expected to continue in the following weeks, with a more detailed budget presentation planned for May. "This is not something we are happy about and we will have more to say about it at the public hearing," Inganamort said.